Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Mar. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | METROPOLITAN LIFE INSURANCE CO | |
Entity Central Index Key | 937834 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $0 | |
Entity Common Stock, Shares Outstanding | 494,466,664 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | $188,911 | $173,746 |
Equity securities available-for-sale, at estimated fair value (cost: $1,926 and $1,813, respectively) | 2,065 | 1,892 |
Trading and fair value option securities, at estimated fair value (includes $654 and $662, respectively, of actively traded securities; and $15 and $23, respectively, relating to variable interest entities) | 705 | 723 |
Mortgage loans (net of valuation allowances of $258 and $272, respectively; includes $308 and $338, respectively, under the fair value option) | 49,059 | 46,024 |
Policy loans | 8,491 | 8,421 |
Real estate and real estate joint ventures (includes $8 and $1,141, respectively, relating to variable interest entities; includes $78 and $40, respectively, of real estate held-for-sale) | 7,874 | 7,798 |
Other limited partnership interests (includes $34 and $53, respectively, relating to variable interest entities) | 4,926 | 4,716 |
Short-term investments, principally at estimated fair value | 4,474 | 5,962 |
Other invested assets (includes $56 and $78, respectively, relating to variable interest entities) | 14,209 | 10,589 |
Total investments | 280,714 | 259,871 |
Cash and cash equivalents, principally at estimated fair value (includes $2 and $21, respectively, relating to variable interest entities) | 1,993 | 1,098 |
Accrued investment income (includes $3 and $2, respectively, relating to variable interest entities) | 2,293 | 2,249 |
Premiums, reinsurance and other receivables (includes $2 and $7, respectively, relating to variable interest entities) | 23,439 | 23,637 |
Deferred policy acquisition costs and value of business acquired | 5,975 | 6,416 |
Other assets (includes $4 and $24, respectively, relating to variable interest entities) | 4,469 | 4,716 |
Separate account assets | 139,335 | 134,796 |
Total assets | 458,218 | 432,783 |
Liabilities | ||
Future policy benefits | 117,402 | 111,963 |
Policyholder account balances | 95,902 | 92,498 |
Other policy-related balances | 5,840 | 5,671 |
Policyholder dividends payable | 615 | 601 |
Policyholder dividend obligation | 3,155 | 1,771 |
Payables for collateral under securities loaned and other transactions | 24,167 | 21,096 |
Short-term debt | 100 | 175 |
Long-term debt (includes $91 and $520, respectively, at estimated fair value, relating to variable interest entities) | 2,027 | 2,828 |
Current income tax payable | 44 | 365 |
Deferred income tax liability (includes $0 and $1, respectively, at estimated fair value, relating to variable interest entities) | 3,835 | 1,785 |
Other liabilities (includes $17 and $31, respectively, relating to variable interest entities) | 33,447 | 32,180 |
Separate account liabilities | 139,335 | 134,796 |
Total liabilities | 425,869 | 405,729 |
Contingencies, Commitments and Guarantees (Note 17) | ||
Redeemable noncontrolling interests | 0 | 774 |
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding | 5 | 5 |
Additional paid-in capital | 14,448 | 14,515 |
Retained earnings | 12,470 | 9,352 |
Accumulated other comprehensive income (loss) | 5,034 | 2,158 |
Total Metropolitan Life Insurance Company stockholder’s equity | 31,957 | 26,030 |
Noncontrolling interests | 392 | 250 |
Total equity | 32,349 | 26,280 |
Total liabilities and equity | $458,218 | $432,783 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $173,604 | $165,371 |
Fixed maturity securities relating to variable interest entities | 188,911 | 173,746 |
Cost of equity securities available-for-sale | 1,926 | 1,813 |
Actively traded securities | 654 | 662 |
Trading and fair value option securities relating to variable interest entities | 705 | 723 |
Mortgage loans valuation allowances | 258 | 272 |
Mortgage loans, under fair value option | 49,059 | 46,024 |
Real estate and real estate joint ventures relating to variable interest entities | 7,874 | 7,798 |
Real estate held-for-sale | 78 | 40 |
Other limited partnership interests relating to variable interest entities | 4,926 | 4,716 |
Other invested assets relating to variable interest entities | 14,209 | 10,589 |
Cash and cash equivalents relating to variable interest entities | 1,993 | 1,098 |
Accrued investment income relating to variable interest entities | 2,293 | 2,249 |
Premiums, reinsurance and other receivables relating to variable interest entities | 23,439 | 23,637 |
Other assets relating to variable interest entities | 4,469 | 4,716 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 2,027 | 2,828 |
Deferred income tax liability relating to variable interest entities | 3,835 | 1,785 |
Other liabilities relating to variable interest entities | 33,447 | 32,180 |
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 494,466,664 | 494,466,664 |
Common stock, shares outstanding | 494,466,664 | 494,466,664 |
Residential mortgage loans — FVO | ||
Assets | ||
Mortgage loans, under fair value option | 308 | 338 |
Variable interest entities [Member] | ||
Assets | ||
Fixed maturity securities relating to variable interest entities | 160 | 157 |
Trading and fair value option securities relating to variable interest entities | 15 | 23 |
Real estate and real estate joint ventures relating to variable interest entities | 8 | 1,141 |
Other limited partnership interests relating to variable interest entities | 34 | 53 |
Other invested assets relating to variable interest entities | 56 | 78 |
Cash and cash equivalents relating to variable interest entities | 2 | 21 |
Accrued investment income relating to variable interest entities | 3 | 2 |
Premiums, reinsurance and other receivables relating to variable interest entities | 2 | 7 |
Other assets relating to variable interest entities | 4 | 24 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 91 | 520 |
Deferred income tax liability relating to variable interest entities | 0 | 1 |
Other liabilities relating to variable interest entities | $17 | $31 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Premiums | $21,384 | $20,475 | $19,880 |
Universal life and investment-type product policy fees | 2,466 | 2,363 | 2,239 |
Net investment income | 11,893 | 11,785 | 11,852 |
Other revenues | 1,808 | 1,699 | 1,730 |
Net investment gains (losses): | |||
Other-than-temporary impairments on fixed maturity securities | -16 | -81 | -214 |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | -10 | -47 | 22 |
Other net investment gains (losses) | 169 | 176 | -138 |
Total net investment gains (losses) | 143 | 48 | -330 |
Net derivative gains (losses) | 1,037 | -1,070 | 675 |
Total revenues | 38,731 | 35,300 | 36,046 |
Expenses | |||
Policyholder benefits and claims | 23,855 | 23,032 | 22,269 |
Interest credited to policyholder account balances | 2,174 | 2,253 | 2,390 |
Policyholder dividends | 1,240 | 1,205 | 1,295 |
Other expenses | 6,071 | 5,988 | 6,394 |
Total expenses | 33,340 | 32,478 | 32,348 |
Income (loss) from continuing operations before provision for income tax | 5,391 | 2,822 | 3,698 |
Provision for income tax expense (benefit) | 1,532 | 681 | 1,055 |
Income (loss) from continuing operations, net of income tax | 3,859 | 2,141 | 2,643 |
Income (loss) from discontinued operations, net of income tax | -3 | 1 | 40 |
Net income (loss) | 3,856 | 2,142 | 2,683 |
Less: Net income (loss) attributable to noncontrolling interests | -5 | -7 | 2 |
Net income (loss) attributable to Metropolitan Life Insurance Company | $3,861 | $2,149 | $2,681 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $3,856 | $2,142 | $2,683 |
Other comprehensive income (loss): | |||
Unrealized investment gains (losses), net of related offsets | 4,165 | -3,337 | 2,502 |
Unrealized gains (losses) on derivatives | 1,288 | -691 | -241 |
Foreign currency translation adjustments | -44 | 22 | -30 |
Defined benefit plans adjustment | -1,001 | 1,191 | -766 |
Other comprehensive income (loss), before income tax | 4,408 | -2,815 | 1,465 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | -1,532 | 965 | -511 |
Other comprehensive income (loss), net of income tax | 2,876 | -1,850 | 954 |
Comprehensive income (loss) | 6,732 | 292 | 3,637 |
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax | -5 | -7 | 2 |
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | $6,737 | $299 | $3,635 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Noncontrolling Interests | Total Metropolitan Life Insurance Company Stockholder's Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) Net Unrealized Investment Gains (Losses) |
In Millions | |||||||
Beginning Balance at Dec. 31, 2011 | $24,720 | $182 | $24,538 | $5 | $14,506 | $6,973 | $3,054 |
Capital contributions from MetLife, Inc. | 3 | 3 | 3 | ||||
Excess tax benefits related to stock-based compensation | 1 | 1 | 1 | ||||
Dividends on common stock | -1,023 | -1,023 | -1,023 | ||||
Dividend of subsidiary | 0 | ||||||
Change in equity of noncontrolling interests | 108 | 108 | 0 | ||||
Net income (loss) | 2,683 | 2 | 2,681 | 2,681 | |||
Other comprehensive income (loss), net of income tax | 954 | 954 | 954 | ||||
Ending Balance at Dec. 31, 2012 | 27,446 | 292 | 27,154 | 5 | 14,510 | 8,631 | 4,008 |
Capital contributions from MetLife, Inc. | 3 | 3 | 3 | ||||
Excess tax benefits related to stock-based compensation | 2 | 2 | 2 | ||||
Dividends on common stock | -1,428 | -1,428 | -1,428 | ||||
Dividend of subsidiary | 0 | ||||||
Change in equity of noncontrolling interests | -35 | -35 | 0 | ||||
Net income (loss) | 2,142 | -7 | 2,149 | 2,149 | |||
Other comprehensive income (loss), net of income tax | -1,850 | -1,850 | -1,850 | ||||
Ending Balance at Dec. 31, 2013 | 26,280 | 250 | 26,030 | 5 | 14,515 | 9,352 | 2,158 |
Capital contributions from MetLife, Inc. | 4 | 4 | 4 | ||||
Returns of capital | -76 | -76 | -76 | ||||
Excess tax benefits related to stock-based compensation | 5 | 5 | 5 | ||||
Dividends on common stock | -708 | -708 | -708 | ||||
Dividend of subsidiary | -35 | -35 | -35 | ||||
Change in equity of noncontrolling interests | 147 | 147 | 0 | ||||
Net income (loss) | 3,856 | -5 | 3,861 | 3,861 | |||
Other comprehensive income (loss), net of income tax | 2,876 | 0 | 2,876 | 2,876 | |||
Ending Balance at Dec. 31, 2014 | $32,349 | $392 | $31,957 | $5 | $14,448 | $12,470 | $5,034 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income (loss) | $3,856 | $2,142 | $2,683 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expenses | 460 | 429 | 416 |
Amortization of premiums and accretion of discounts associated with investments, net | -664 | -738 | -698 |
(Gains) losses on investments and from sales of businesses, net | -138 | -49 | 272 |
(Gains) losses on derivatives, net | -902 | 1,059 | -561 |
(Income) loss from equity method investments, net of dividends or distributions | 374 | 195 | 42 |
Interest credited to policyholder account balances | 2,174 | 2,253 | 2,390 |
Universal life and investment-type product policy fees | -2,466 | -2,363 | -2,239 |
Change in trading and fair value option securities | 2 | 25 | -100 |
Change in accrued investment income | 242 | 108 | 22 |
Change in premiums, reinsurance and other receivables | 711 | -368 | -422 |
Change in deferred policy acquisition costs and value of business acquired, net | 271 | -82 | 359 |
Change in income tax | 229 | 334 | -28 |
Change in other assets | 465 | 471 | 361 |
Change in insurance-related liabilities and policy-related balances | 2,672 | 3,032 | 1,915 |
Change in other liabilities | -1,086 | -381 | 170 |
Other, net | 1 | -7 | -46 |
Net cash provided by (used in) operating activities | 6,201 | 6,060 | 4,536 |
Cash flows from investing activities | |||
Sales, maturities and repayments of fixed maturity securities | 63,068 | 71,396 | 52,889 |
Sales, maturities and repayments of equity securities | 186 | 206 | 245 |
Sales, maturities and repayments of mortgage loans | 11,605 | 10,655 | 8,668 |
Sales, maturities and repayments of real estate and real estate joint ventures | 976 | 87 | 721 |
Sales, maturities and repayments of other limited partnership interests | 375 | 449 | 585 |
Purchases of fixed maturity securities | -69,256 | -70,760 | -62,136 |
Purchases of equity securities | -173 | -461 | -393 |
Purchases of mortgage loans | -14,769 | -12,032 | -9,448 |
Purchases of real estate and real estate joint ventures | -1,876 | -1,427 | -1,447 |
Purchases of other limited partnership interests | -773 | -675 | -660 |
Cash received in connection with freestanding derivatives | 740 | 560 | 634 |
Cash paid in connection with freestanding derivatives | -1,050 | -1,171 | -443 |
Dividend of subsidiary | -49 | 0 | 0 |
Receipts on loans to affiliates | 75 | 0 | 0 |
Issuances of loans to affiliates | -100 | 0 | 0 |
Purchases of loans to affiliates | -437 | 0 | 0 |
Net change in policy loans | -70 | -57 | -50 |
Net change in short-term investments | 1,472 | 900 | -567 |
Net change in other invested assets | -254 | -460 | -791 |
Net change in property, equipment and leasehold improvements | -140 | -76 | -71 |
Other, net | 17 | 0 | 0 |
Net cash provided by (used in) investing activities | -10,433 | -2,866 | -12,264 |
Cash flows from financing activities | |||
Policyholder account balances: Deposits | 54,902 | 50,018 | 61,647 |
Policyholder account balances: Withdrawals | -51,210 | -52,020 | -56,373 |
Net change in payables for collateral under securities loaned and other transactions | 3,071 | -1,365 | 2,181 |
Net change in short-term debt | -320 | 75 | -1 |
Long-term debt issued | 4 | 481 | 79 |
Long-term debt repaid | -390 | -27 | -81 |
Cash received in connection with redeemable noncontrolling interests | 0 | 774 | 0 |
Dividends on common stock | -708 | -1,428 | -1,023 |
Other, net | -222 | -5 | 611 |
Net cash provided by (used in) financing activities | 5,127 | -3,497 | 7,040 |
Change in cash and cash equivalents | 895 | -303 | -688 |
Cash and cash equivalents, beginning of year | 1,098 | 1,401 | 2,089 |
Cash and cash equivalents, end of year | 1,993 | 1,098 | 1,401 |
Supplemental disclosures of cash flow information | |||
Net cash paid for Interest | 150 | 152 | 151 |
Net cash paid (received) for income tax | 1,304 | 822 | 842 |
Non-cash transactions: | |||
Capital contributions from MetLife, Inc. | 4 | 3 | 3 |
Real estate and real estate joint ventures acquired in satisfaction of debt | 3 | 18 | 264 |
Reduction of redeemable noncontrolling interests | 774 | 0 | 0 |
Reduction of long-term debt | 413 | 0 | 0 |
Reduction of real estate and real estate joint ventures | 1,132 | 0 | 0 |
Issuance of short-term debt | 245 | 0 | 0 |
Returns of capital | 76 | 0 | 0 |
Disposal of subsidiary: | |||
Assets disposed | 69 | 0 | 0 |
Liabilities disposed | -34 | 0 | 0 |
Dividends, Common Stock, Paid-in-kind | 35 | 0 | 0 |
Cash disposed | -49 | 0 | 0 |
Dividend of interests in subsidiary | 14 | 0 | 0 |
Loss on dividend of interests in subsidiary | $0 | $0 | $0 |
Business_Basis_of_Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies | |||||||
Business | ||||||||
Metropolitan Life Insurance Company and its subsidiaries (collectively, “MLIC” or the “Company”) is a provider of life insurance, annuities, employee benefits and asset management and is organized into three segments: Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. | ||||||||
Basis of Presentation | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates. | ||||||||
Consolidation | ||||||||
The accompanying consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. | ||||||||
Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. | ||||||||
Discontinued Operations | ||||||||
The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. Effective January 1, 2014, the Company early adopted new guidance regarding reporting of discontinued operations for disposals or classifications as held-for-sale that have not been previously reported in the consolidated financial statements. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. | ||||||||
Separate Accounts | ||||||||
Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: | ||||||||
• | such separate accounts are legally recognized; | |||||||
• | assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities; | |||||||
• | investments are directed by the contractholder; and | |||||||
• | all investment performance, net of contract fees and assessments, is passed through to the contractholder. | |||||||
The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the statements of operations. Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. | ||||||||
The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees in the statements of operations. | ||||||||
Reclassifications | ||||||||
Amounts in the prior years’ consolidated financial statements have been reclassified to conform with the 2014 presentation. Certain derivatives (gains) losses were previously reported in: (i) (gains) losses on investments and from sales of businesses, net; and (ii) other, net and were reclassified to (gains) losses on derivatives, net. The following table presents such reclassifications, all within cash flows from operating activities, in the consolidated statements of cash flows: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
(Gains) losses on investments and from sales of businesses, net | $ | (1,161 | ) | $ | 460 | |||
Other, net | $ | 102 | $ | 101 | ||||
(Gains) losses on derivatives, net | $ | 1,059 | $ | (561 | ) | |||
Additionally, certain amounts in the prior years’ footnotes have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements. | ||||||||
Summary of Significant Accounting Policies | ||||||||
The following are the Company’s significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. | ||||||||
Accounting Policy | Note | |||||||
Insurance | 4 | |||||||
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | 5 | |||||||
Reinsurance | 6 | |||||||
Investments | 8 | |||||||
Derivatives | 9 | |||||||
Fair Value | 10 | |||||||
Goodwill | 11 | |||||||
Employee Benefit Plans | 15 | |||||||
Income Tax | 16 | |||||||
Litigation Contingencies | 17 | |||||||
Insurance | ||||||||
Future Policy Benefit Liabilities and Policyholder Account Balances | ||||||||
The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality, morbidity and interest rates are “locked in” upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. | ||||||||
Premium deficiency reserves may also be established for short duration contracts to provide for expected future losses. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short duration contracts. | ||||||||
Liabilities for universal and variable life secondary guarantees and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondary guarantee and paid-up guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs (“DAC”), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor’s Ratings Services (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. | ||||||||
The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. | ||||||||
Policyholder account balances (“PABs”) relate to contract or contract features where the Company has no significant insurance risk. | ||||||||
The Company issues directly and assumes through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. | ||||||||
Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). | ||||||||
Guarantees accounted for as embedded derivatives in PABs include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. | ||||||||
Other Policy-Related Balances | ||||||||
Other policy-related balances include policy and contract claims, unearned revenue liabilities, premiums received in advance, policyholder dividends due and unpaid and policyholder dividends left on deposit. | ||||||||
The liability for policy and contract claims generally relates to incurred but not reported death, disability, long-term care (“LTC”) and dental claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. | ||||||||
The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits and margins, similar to DAC as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. | ||||||||
The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance and applies the cash received to premiums when due. | ||||||||
Recognition of Insurance Revenues and Deposits | ||||||||
Premiums related to traditional life and annuity policies with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. | ||||||||
Premiums related to non-medical health and disability contracts are recognized on a pro rata basis over the applicable contract term. | ||||||||
Deposits related to universal life-type and investment-type products are credited to PABs. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related PABs. | ||||||||
Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. | ||||||||
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | ||||||||
The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: | ||||||||
• | incremental direct costs of contract acquisition, such as commissions; | |||||||
• | the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and | |||||||
• | other essential direct costs that would not have been incurred had a policy not been acquired or renewed. | |||||||
All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. | ||||||||
Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. | ||||||||
DAC and VOBA are amortized as follows: | ||||||||
Products: | In proportion to the following over estimated lives of the contracts: | |||||||
• | Nonparticipating and non-dividend-paying traditional contracts: | Historic actual and expected future gross premiums. | ||||||
• | Term insurance | |||||||
• | Nonparticipating whole life insurance | |||||||
• | Traditional group life insurance | |||||||
• | Non-medical health insurance | |||||||
• | Participating, dividend-paying traditional contracts | Actual and expected future gross margins. | ||||||
• | Fixed and variable universal life contracts | Actual and expected future gross profits. | ||||||
• | Fixed and variable deferred annuity contracts | |||||||
See Note 5 for additional information on DAC and VOBA amortization. | ||||||||
The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated in the financial statements for reporting purposes. | ||||||||
The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset. | ||||||||
Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired (“VOCRA”) is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired. | ||||||||
Reinsurance | ||||||||
For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. | ||||||||
For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. | ||||||||
For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned premiums are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method. | ||||||||
Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. | ||||||||
The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. | ||||||||
Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). | ||||||||
If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Certain assumed GMWB, GMAB and GMIB are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). | ||||||||
Investments | ||||||||
Net Investment Income and Net Investment Gains (Losses) | ||||||||
Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. | ||||||||
Fixed Maturity and Equity Securities | ||||||||
The majority of the Company’s fixed maturity and equity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. | ||||||||
Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recognized when declared. | ||||||||
The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 8 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” | ||||||||
For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. | ||||||||
With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security’s cost and its estimated fair value. | ||||||||
Trading and Fair Value Option Securities | ||||||||
Trading and fair value option securities are stated at estimated fair value and include investments that are actively purchased and sold (“Actively Traded Securities”) and investments for which the fair value option (“FVO”) has been elected (“FVO Securities”). | ||||||||
Actively Traded Securities principally include fixed maturity securities and short sale agreement liabilities, which are included in other liabilities. | ||||||||
Changes in estimated fair value of these securities are included in net investment income, except for certain securities included in FVO Securities where changes are included in net investment gains (losses). | ||||||||
Mortgage Loans | ||||||||
The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural, and residential. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 8. | ||||||||
Mortgage Loans Held-For-Investment | ||||||||
Mortgage loans held-for-investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. | ||||||||
Also included in mortgage loans held-for-investment are residential mortgage loans for which the FVO was elected. These mortgage loans are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. | ||||||||
Mortgage Loans Held-For-Sale | ||||||||
Mortgage loans held-for-sale that were previously designated as held-for-investment and mortgage loans originated with the intent to sell for which FVO was not elected, are stated at the lower of amortized cost or estimated fair value. | ||||||||
Policy Loans | ||||||||
Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. | ||||||||
Real Estate | ||||||||
Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years). Rental income is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks. | ||||||||
Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. | ||||||||
Real Estate Joint Ventures and Other Limited Partnership Interests | ||||||||
The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. | ||||||||
The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. The Company recognizes distributions on cost method investments as earned or received. Because of the nature and structure of these cost method investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards. | ||||||||
The Company routinely evaluates its equity method and cost method investments for impairment. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value (“NAV”). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. | ||||||||
Short-term Investments | ||||||||
Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. | ||||||||
Other Invested Assets | ||||||||
Other invested assets consist principally of the following: | ||||||||
• | Freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. | |||||||
• | Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. | |||||||
• | Loans to affiliates which are stated at unpaid principal balance and adjusted for any unamortized premium or discount. | |||||||
• | Leveraged leases which are recorded net of non-recourse debt. Income is recognized by applying the leveraged lease’s estimated rate of return to the net investment in the lease. The Company regularly reviews residual values for impairment. | |||||||
• | Direct financing leases gross investment is equal to the minimum lease payments plus the unguaranteed residual value. Income is recorded by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews lease receivables for impairment. | |||||||
• | Funds withheld which represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments. | |||||||
• | Investments in operating joint ventures that engage in insurance underwriting activities and are accounted for under the equity method. | |||||||
Securities Lending Program | ||||||||
Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the Company’s financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. | ||||||||
Derivatives | ||||||||
Freestanding Derivatives | ||||||||
Freestanding derivatives are carried in the Company’s balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. | ||||||||
Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. | ||||||||
If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: | ||||||||
Statement of Operations Presentation: | Derivative: | |||||||
Policyholder benefits and claims | • | Economic hedges of variable annuity guarantees included in future policy benefits | ||||||
Net investment income | • | Economic hedges of equity method investments in joint ventures | ||||||
• | All derivatives held in relation to trading portfolios | |||||||
Hedge Accounting | ||||||||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: | ||||||||
• | Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. | |||||||
• | Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). | |||||||
The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of operations within interest income or interest expense to match the location of the hedged item. | ||||||||
In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. | ||||||||
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. | ||||||||
When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried in the balance sheets at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statements of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. | ||||||||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried in the balance sheets at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). | ||||||||
In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value in the balance sheets, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). | ||||||||
Embedded Derivatives | ||||||||
The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: | ||||||||
• | the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; | |||||||
• | the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and | |||||||
• | a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. | |||||||
Such embedded derivatives are carried in the balance sheets at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. | ||||||||
Fair Value | ||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. | ||||||||
Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of assets and liabilities. | ||||||||
Goodwill | ||||||||
Goodwill, which is included in other assets, represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter of each year based upon data as of the close of the second quarter. Goodwill associated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairment event. | ||||||||
The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, there may be an indication of impairment. In such instances, the implied fair value of the goodwill is determined in the same manner as the amount of goodwill that would be determined in a business combination. The excess of the carrying value of goodwill over the implied fair value of goodwill would be recognized as an impairment and recorded as a charge against net income. | ||||||||
On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have an impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. | ||||||||
Employee Benefit Plans | ||||||||
The Company sponsors and administers various qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering eligible employees and sales representatives who meet specified eligibility requirements of the sponsor and its participating affiliates. A December 31 measurement date is used for all of the Company’s defined benefit pension and other postretirement benefit plans. | ||||||||
The Company recognizes the funded status of the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits for each of its plans. The Company recognizes an expense for differences between actual experience and estimates over the average future service period of participants. The actuarial gains (losses), prior service costs and credits not yet included in net periodic benefit costs are charged to accumulated OCI (“AOCI”), net of income tax. | ||||||||
The Company also sponsors defined contribution plans for substantially all U.S. employees under which a portion of participant contributions is matched. Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions. As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized in the balance sheets. | ||||||||
Income Tax | ||||||||
Metropolitan Life Insurance Company and its includable subsidiaries join with MetLife, Inc. and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to Metropolitan Life Insurance Company and its subsidiaries under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife, Inc, has elected the “percentage method” (and 100% under such method) of reimbursing companies for tax attributes, e.g., net operating losses. As a result, 100% of tax attributes are reimbursed by MetLife, Inc. to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes. On an annual basis, each of the profitable subsidiaries pays to MetLife, Inc. the federal income tax which it would have paid based upon that year’s taxable income. If Metropolitan Life Insurance Company or its includable subsidiaries has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by Metropolitan Life Insurance Company and its includable subsidiaries when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if Metropolitan Life Insurance Company or its includable subsidiaries would not have realized the attributes on a stand-alone basis under a “wait and see” method. | ||||||||
The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. | ||||||||
Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. | ||||||||
The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: | ||||||||
• | the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; | |||||||
• | the jurisdiction in which the deferred tax asset was generated; | |||||||
• | the length of time that carryforward can be utilized in the various taxing jurisdiction; | |||||||
• | future taxable income exclusive of reversing temporary differences and carryforwards; | |||||||
• | future reversals of existing taxable temporary differences; | |||||||
• | taxable income in prior carryback years; and | |||||||
• | tax planning strategies. | |||||||
The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes could significantly affect the amounts reported in the financial statements in the year these changes occur. | ||||||||
The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. | ||||||||
The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax. | ||||||||
Litigation Contingencies | ||||||||
The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 17, legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company’s financial statements. | ||||||||
Other Accounting Policies | ||||||||
Redeemable Noncontrolling Interests | ||||||||
Redeemable noncontrolling interests associated with certain joint ventures and partially-owned consolidated subsidiaries are reported in the temporary section of the balance sheet. | ||||||||
Stock-Based Compensation | ||||||||
Stock-based compensation recognized in the Company’s consolidated results of operations is allocated from MetLife, Inc. The accounting policies described below represent those that MetLife, Inc. applies in determining such allocated expenses. | ||||||||
MetLife, Inc. grants certain employees and directors stock-based compensation awards under various plans that are subject to specific vesting conditions. With the exception of performance shares granted in 2014 and 2013 which are re-measured quarterly, the cost of all stock-based transactions is measured at fair value at grant date and recognized over the period during which a grantee is required to provide services in exchange for the award. Although the terms of MetLife, Inc.’s stock-based plans do not accelerate vesting upon retirement, or the attainment of retirement eligibility, the requisite service period subsequent to attaining such eligibility is considered nonsubstantive. Accordingly, MetLife, Inc. recognizes compensation expense related to stock-based awards over the shorter of the requisite service period or the period to attainment of retirement eligibility. An estimation of future forfeitures of stock-based awards is incorporated into the determination of compensation expense when recognizing expense over the requisite service period. | ||||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. | ||||||||
Property, Equipment, Leasehold Improvements and Computer Software | ||||||||
Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life is generally 40 years for company occupied real estate property, from one to 25 years for leasehold improvements, and from three to seven years for all other property and equipment. The cost basis of the property, equipment and leasehold improvements was $1.3 billion and $1.2 billion at December 31, 2014 and 2013, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $721 million and $667 million at December 31, 2014 and 2013, respectively. Related depreciation and amortization expense was $123 million, $115 million and $121 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four-year period using the straight-line method. The cost basis of computer software was $1.2 billion and $1.0 billion at December 31, 2014 and 2013, respectively. Accumulated amortization of capitalized software was $882 million and $739 million at December 31, 2014 and 2013, respectively. Related amortization expense was $145 million, $144 million and $143 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Other Revenues | ||||||||
Other revenues include, in addition to items described elsewhere herein, advisory fees, broker-dealer commissions and fees, administrative service fees, and changes in account value relating to corporate-owned life insurance (“COLI”). Such fees and commissions are recognized in the period in which services are performed. Under certain COLI contracts, if the Company reports certain unlikely adverse results in its financial statements, withdrawals would not be immediately available and would be subject to market value adjustment, which could result in a reduction of the account value. | ||||||||
Policyholder Dividends | ||||||||
Policyholder dividends are approved annually by Metropolitan Life Insurance Company and its insurance subsidiaries’ boards of directors. The aggregate amount of policyholder dividends is related to actual interest, mortality, morbidity and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by Metropolitan Life Insurance Company and its insurance subsidiaries. | ||||||||
Foreign Currency | ||||||||
Assets, liabilities and operations of foreign affiliates and subsidiaries are recorded based on the functional currency of each entity. The determination of the functional currency is made based on the appropriate economic and management indicators. The local currencies of foreign operations are the functional currencies. Assets and liabilities of foreign affiliates and subsidiaries are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and income and expense accounts are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. | ||||||||
Adoption of New Accounting Pronouncements | ||||||||
Effective November 18, 2014, the Company adopted new guidance on when, if ever, the cost of acquiring an entity should be used to establish a new accounting basis (“pushdown”) in the acquired entity’s separate financial statements. The guidance provides an acquired entity and its subsidiaries with an irrevocable option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. If a reporting entity elects to apply pushdown accounting, its stand-alone financial statements would reflect the acquirer’s new basis in the acquired entity’s assets and liabilities. The election to apply pushdown accounting should be determined by an acquired entity for each individual change-in-control event in which an acquirer obtains control of the acquired entity; however, an entity that does not elect to apply pushdown accounting in the period of a change-in-control can later elect to retrospectively apply pushdown accounting to the most recent change-in-control transaction as a change in accounting principle. The new guidance did not have a material impact on the financial statements upon adoption. | ||||||||
Effective January 1, 2014, the Company adopted new guidance regarding the presentation of an unrecognized tax benefit. The new guidance requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, when the carryforwards are not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset. The adoption was prospectively applied and resulted in a reduction to other liabilities and a corresponding increase to deferred income tax liability in the amount of $190 million. | ||||||||
Effective January 1, 2014, the Company adopted new guidance on other expenses. The objective of this standard is to address how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act. The amendments in this standard specify that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense using the straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. In accordance with the adoption of the new accounting pronouncement, on January 1, 2014, the Company recorded $55 million in other liabilities, and a corresponding deferred cost, in other assets. | ||||||||
Effective July 17, 2013, the Company adopted guidance regarding derivatives that permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the United States Treasury and London Interbank Offered Rate (“LIBOR”). Also, this new guidance removes the restriction on using different benchmark rates for similar hedges. The new guidance did not have a material impact on the financial statements upon adoption. | ||||||||
Effective January 1, 2013, the Company adopted guidance regarding comprehensive income that requires an entity to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The adoption was prospectively applied and resulted in additional disclosures in Note 13. | ||||||||
Effective January 1, 2013, the Company adopted guidance regarding balance sheet offsetting disclosures which requires an entity to disclose information about offsetting and related arrangements for derivatives, including bifurcated embedded derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions, to enable users of its financial statements to understand the effects of those arrangements on its financial position. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The adoption was retrospectively applied and resulted in additional disclosures related to derivatives in Note 9. | ||||||||
On January 1, 2012, the Company adopted guidance regarding accounting for DAC, which was retrospectively applied. The guidance specifies that only costs related directly to successful acquisition of new or renewal contracts can be capitalized as DAC; all other acquisition-related costs must be expensed as incurred. As a result, certain sales manager compensation and administrative costs previously capitalized by the Company will no longer be deferred. | ||||||||
On January 1, 2012, the Company adopted guidance regarding comprehensive income, which was retrospectively applied, that provides companies with the option to present the total of comprehensive income, components of net income, and the components of OCI either in a single continuous statement of comprehensive income or in two separate but consecutive statements in annual financial statements. The standard eliminates the option to present components of OCI as part of the statement of changes in stockholder’s equity. The Company adopted the two-statement approach for annual financial statements. | ||||||||
Effective January 1, 2012, the Company adopted guidance on goodwill impairment testing that simplifies how an entity tests goodwill for impairment. This new guidance allows an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it needs to perform the quantitative two-step goodwill impairment test. Only if an entity determines, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value will it be required to calculate the fair value of the reporting unit. The qualitative assessment is optional and the Company is permitted to bypass it for any reporting unit in any period and begin its impairment analysis with the quantitative calculation. The Company is permitted to perform the qualitative assessment in any subsequent period. | ||||||||
Effective January 1, 2012, the Company adopted guidance regarding fair value measurements that establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. Some of the amendments clarify the Financial Accounting Standards Board’s (“FASB”) intent on the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The adoption did not have a material impact on the Company’s financial statements other than the expanded disclosures in Note 10. | ||||||||
Future Adoption of New Accounting Pronouncements | ||||||||
In February 2015, the FASB issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in the ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | ||||||||
In June 2014, the FASB issued new guidance on transfers and servicing ASU 2014‑11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure), effective prospectively for fiscal years beginning after December 15, 2014 and interim periods within those years. The new guidance requires that repurchase-to-maturity transactions and repurchase financing arrangements be accounted for as secured borrowings and provides for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The adoption of this new guidance will not have a material impact on the Company’s consolidated financial statements. | ||||||||
In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014‑09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | ||||||||
In January 2014, the FASB issued new guidance regarding investments (ASU 2014‑01, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects), effective retrospectively for fiscal years beginning after December 15, 2014 and interim reporting periods within those years. The new guidance is applicable to investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity that meets certain conditions is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance on the statement of operations as a component of income tax expense (benefit). The adoption of this new guidance will not have an impact on the Company’s consolidated financial statements. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Information | 2. Segment Information | ||||||||||||||||||||||||||||
The Company is organized into three segments: Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. | |||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||
The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products. Annuities includes a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs. | |||||||||||||||||||||||||||||
Group, Voluntary & Worksite Benefits | |||||||||||||||||||||||||||||
The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees. Group, Voluntary & Worksite Benefits insurance products and services include life, dental, group short- and long-term disability and accidental death and dismemberment (“AD&D”) coverages. In addition, the Group, Voluntary & Worksite Benefits segment offers LTC, critical illness and accident & health coverages, as well as prepaid legal plans. | |||||||||||||||||||||||||||||
Corporate Benefit Funding | |||||||||||||||||||||||||||||
The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives. | |||||||||||||||||||||||||||||
Corporate & Other | |||||||||||||||||||||||||||||
Corporate & Other contains the excess capital, as well as enterprise-wide strategic initiative restructuring charges, not allocated to the segments, various start-up businesses (including the investment management business through which the Company offers fee-based investment management services to institutional clients, as well as direct and digital marketing products), certain run-off businesses, the Company’s ancillary international operations and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes ancillary U.S. sponsored direct business, comprised of group and individual products sold through sponsoring organizations and affinity groups. Additionally, Corporate & Other includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. | |||||||||||||||||||||||||||||
Financial Measures and Segment Accounting Policies | |||||||||||||||||||||||||||||
Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. | |||||||||||||||||||||||||||||
Operating earnings is defined as operating revenues less operating expenses, both net of income tax. | |||||||||||||||||||||||||||||
Operating revenues excludes net investment gains (losses) and net derivative gains (losses). | |||||||||||||||||||||||||||||
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues: | |||||||||||||||||||||||||||||
• | Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”); and | ||||||||||||||||||||||||||||
• | Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, and (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP. | ||||||||||||||||||||||||||||
The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: | |||||||||||||||||||||||||||||
• | Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); | ||||||||||||||||||||||||||||
• | Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment; | ||||||||||||||||||||||||||||
• | Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; | ||||||||||||||||||||||||||||
• | Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and | ||||||||||||||||||||||||||||
• | Other expenses excludes costs related to noncontrolling interests and goodwill impairments. | ||||||||||||||||||||||||||||
Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2014, 2013 and 2012 and at December 31, 2014 and 2013. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. | |||||||||||||||||||||||||||||
Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife, Inc.’s and the Company’s business. | |||||||||||||||||||||||||||||
MetLife, Inc.’s economic capital model aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon and applying an industry standard method for the inclusion of diversification benefits among risk types. MetLife, Inc.’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. | |||||||||||||||||||||||||||||
Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax. | |||||||||||||||||||||||||||||
Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. | |||||||||||||||||||||||||||||
Effective January 1, 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, including revising the Company’s capital allocation methodology. The changes will be applied retrospectively beginning with the first quarter of 2015. The changes will not impact total consolidated operating earnings or net income. | |||||||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Retail | Group, | Corporate | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||
Voluntary | Benefit | & Other | Consolidated | ||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Premiums | $ | 4,081 | $ | 14,381 | $ | 2,794 | $ | 128 | $ | 21,384 | $ | — | $ | 21,384 | |||||||||||||||
Universal life and investment-type product policy fees | 1,505 | 716 | 191 | — | 2,412 | 54 | 2,466 | ||||||||||||||||||||||
Net investment income | 5,402 | 1,783 | 4,892 | 288 | 12,365 | (472 | ) | 11,893 | |||||||||||||||||||||
Other revenues | 430 | 415 | 287 | 676 | 1,808 | — | 1,808 | ||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 143 | 143 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | 1,037 | 1,037 | ||||||||||||||||||||||
Total revenues | 11,418 | 17,295 | 8,164 | 1,092 | 37,969 | 762 | 38,731 | ||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 6,379 | 13,823 | 4,771 | 77 | 25,050 | 45 | 25,095 | ||||||||||||||||||||||
Interest credited to policyholder account balances | 988 | 155 | 1,020 | — | 2,163 | 11 | 2,174 | ||||||||||||||||||||||
Capitalization of DAC | (376 | ) | (17 | ) | (30 | ) | (1 | ) | (424 | ) | — | (424 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 536 | 26 | 17 | — | 579 | 116 | 695 | ||||||||||||||||||||||
Interest expense on debt | 6 | 2 | 10 | 132 | 150 | 1 | 151 | ||||||||||||||||||||||
Other expenses | 1,797 | 2,135 | 492 | 1,231 | 5,655 | (6 | ) | 5,649 | |||||||||||||||||||||
Total expenses | 9,330 | 16,124 | 6,280 | 1,439 | 33,173 | 167 | 33,340 | ||||||||||||||||||||||
Provision for income tax expense (benefit) | 733 | 430 | 659 | (500 | ) | 1,322 | 210 | 1,532 | |||||||||||||||||||||
Operating earnings | $ | 1,355 | $ | 741 | $ | 1,225 | $ | 153 | 3,474 | ||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||
Total revenues | 762 | ||||||||||||||||||||||||||||
Total expenses | (167 | ) | |||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (210 | ) | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 3,859 | $ | 3,859 | |||||||||||||||||||||||||
At December 31, 2014 | Retail | Group, | Corporate | Corporate | Total | ||||||||||||||||||||||||
Voluntary | Benefit | & Other | |||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Total assets | $ | 180,572 | $ | 43,161 | $ | 205,088 | $ | 29,397 | $ | 458,218 | |||||||||||||||||||
Separate account assets | $ | 59,710 | $ | 669 | $ | 78,956 | $ | — | $ | 139,335 | |||||||||||||||||||
Separate account liabilities | $ | 59,710 | $ | 669 | $ | 78,956 | $ | — | $ | 139,335 | |||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Retail | Group, | Corporate | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||
Voluntary | Benefit | & Other | Consolidated | ||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Premiums | $ | 3,992 | $ | 13,732 | $ | 2,675 | $ | 76 | $ | 20,475 | $ | — | $ | 20,475 | |||||||||||||||
Universal life and investment-type product policy fees | 1,397 | 688 | 211 | — | 2,296 | 67 | 2,363 | ||||||||||||||||||||||
Net investment income | 5,385 | 1,790 | 4,611 | 431 | 12,217 | (432 | ) | 11,785 | |||||||||||||||||||||
Other revenues | 328 | 404 | 273 | 694 | 1,699 | — | 1,699 | ||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 48 | 48 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | (1,070 | ) | (1,070 | ) | ||||||||||||||||||||
Total revenues | 11,102 | 16,614 | 7,770 | 1,201 | 36,687 | (1,387 | ) | 35,300 | |||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 6,246 | 13,191 | 4,723 | 67 | 24,227 | 10 | 24,237 | ||||||||||||||||||||||
Interest credited to policyholder account balances | 988 | 156 | 1,092 | — | 2,236 | 17 | 2,253 | ||||||||||||||||||||||
Capitalization of DAC | (517 | ) | (20 | ) | (25 | ) | — | (562 | ) | — | (562 | ) | |||||||||||||||||
Amortization of DAC and VOBA | 447 | 25 | 19 | — | 491 | (230 | ) | 261 | |||||||||||||||||||||
Interest expense on debt | 5 | 1 | 10 | 134 | 150 | 3 | 153 | ||||||||||||||||||||||
Other expenses | 2,280 | 1,988 | 489 | 1,348 | 6,105 | 31 | 6,136 | ||||||||||||||||||||||
Total expenses | 9,449 | 15,341 | 6,308 | 1,549 | 32,647 | (169 | ) | 32,478 | |||||||||||||||||||||
Provision for income tax expense (benefit) | 579 | 446 | 512 | (421 | ) | 1,116 | (435 | ) | 681 | ||||||||||||||||||||
Operating earnings | $ | 1,074 | $ | 827 | $ | 950 | $ | 73 | 2,924 | ||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||
Total revenues | (1,387 | ) | |||||||||||||||||||||||||||
Total expenses | 169 | ||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 435 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,141 | $ | 2,141 | |||||||||||||||||||||||||
At December 31, 2013 | Retail | Group, | Corporate | Corporate | Total | ||||||||||||||||||||||||
Voluntary | Benefit | & Other | |||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Total assets | $ | 174,853 | $ | 41,059 | $ | 188,960 | $ | 27,911 | $ | 432,783 | |||||||||||||||||||
Separate account assets | $ | 59,217 | $ | 644 | $ | 74,935 | $ | — | $ | 134,796 | |||||||||||||||||||
Separate account liabilities | $ | 59,217 | $ | 644 | $ | 74,935 | $ | — | $ | 134,796 | |||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Year Ended December 31, 2012 | Retail | Group, | Corporate | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||
Voluntary | Benefit | & Other | Consolidated | ||||||||||||||||||||||||||
& Worksite Benefits | Funding | ||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Premiums | $ | 3,997 | $ | 13,274 | $ | 2,608 | $ | 1 | $ | 19,880 | $ | — | $ | 19,880 | |||||||||||||||
Universal life and investment-type product policy fees | 1,332 | 663 | 194 | — | 2,189 | 50 | 2,239 | ||||||||||||||||||||||
Net investment income | 5,384 | 1,680 | 4,519 | 554 | 12,137 | (285 | ) | 11,852 | |||||||||||||||||||||
Other revenues | 265 | 398 | 252 | 815 | 1,730 | — | 1,730 | ||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | (330 | ) | (330 | ) | ||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | 675 | 675 | ||||||||||||||||||||||
Total revenues | 10,978 | 16,015 | 7,573 | 1,370 | 35,936 | 110 | 36,046 | ||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 6,294 | 12,580 | 4,552 | (1 | ) | 23,425 | 139 | 23,564 | |||||||||||||||||||||
Interest credited to policyholder account balances | 1,002 | 167 | 1,192 | — | 2,361 | 29 | 2,390 | ||||||||||||||||||||||
Capitalization of DAC | (584 | ) | (24 | ) | (24 | ) | — | (632 | ) | — | (632 | ) | |||||||||||||||||
Amortization of DAC and VOBA | 656 | 29 | 12 | 2 | 699 | 292 | 991 | ||||||||||||||||||||||
Interest expense on debt | 5 | 1 | 9 | 133 | 148 | 4 | 152 | ||||||||||||||||||||||
Other expenses | 2,341 | 1,901 | 438 | 1,196 | 5,876 | 7 | 5,883 | ||||||||||||||||||||||
Total expenses | 9,714 | 14,654 | 6,179 | 1,330 | 31,877 | 471 | 32,348 | ||||||||||||||||||||||
Provision for income tax expense (benefit) | 442 | 477 | 488 | (236 | ) | 1,171 | (116 | ) | 1,055 | ||||||||||||||||||||
Operating earnings | $ | 822 | $ | 884 | $ | 906 | $ | 276 | 2,888 | ||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||
Total revenues | 110 | ||||||||||||||||||||||||||||
Total expenses | (471 | ) | |||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 116 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,643 | $ | 2,643 | |||||||||||||||||||||||||
The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Life insurance | $ | 13,865 | $ | 13,482 | $ | 13,424 | |||||||||||||||||||||||
Accident and health insurance | 7,247 | 6,873 | 6,458 | ||||||||||||||||||||||||||
Annuities | 4,352 | 4,007 | 3,800 | ||||||||||||||||||||||||||
Non-insurance | 194 | 175 | 167 | ||||||||||||||||||||||||||
Total | $ | 25,658 | $ | 24,537 | $ | 23,849 | |||||||||||||||||||||||
Substantially all of the Company’s consolidated premiums, universal life & investment-type product policy fees and other revenues originated in the U.S. | |||||||||||||||||||||||||||||
Revenues derived from one Group, Voluntary & Worksite Benefits customer were $2.8 billion, $2.5 billion and $2.5 billion for the years ended December 31, 2014, 2013 and 2012, respectively, which represented 11%, 10% and 11%, respectively, of consolidated premiums, universal life and investment-type product policy fees and other revenues. Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2014, 2013 and 2012. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 3. Dispositions |
In December 2014, Metropolitan Life Insurance Company distributed to MetLife as a dividend, all of the issued and outstanding shares of common stock of its wholly-owned, broker-dealer subsidiary, New England Securities Corporation (“NES”). The net book value of NES at the time of the dividend was $35 million, which was recorded as a dividend of retained earnings of $35 million. As of the date of the dividend payment, the Company no longer consolidates the assets, liabilities and operations of NES. |
Insurance
Insurance | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||
Insurance | 4. Insurance | |||||||||||||||||||
Insurance Liabilities | ||||||||||||||||||||
Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, PABs and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Retail | $ | 91,868 | $ | 91,575 | ||||||||||||||||
Group, Voluntary & Worksite Benefits | 28,805 | 28,035 | ||||||||||||||||||
Corporate Benefit Funding | 97,953 | 89,941 | ||||||||||||||||||
Corporate & Other | 518 | 581 | ||||||||||||||||||
Total | $ | 219,144 | $ | 210,132 | ||||||||||||||||
See Note 6 for discussion of affiliated reinsurance liabilities included in the table above. | ||||||||||||||||||||
Future policy benefits are measured as follows: | ||||||||||||||||||||
Product Type: | Measurement Assumptions: | |||||||||||||||||||
Participating life | Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. | |||||||||||||||||||
Nonparticipating life | Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11%. | |||||||||||||||||||
Individual and group | Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11%. | |||||||||||||||||||
traditional fixed annuities | ||||||||||||||||||||
after annuitization | ||||||||||||||||||||
Non-medical health | The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. | |||||||||||||||||||
insurance | ||||||||||||||||||||
Disabled lives | Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 3% to 8%. | |||||||||||||||||||
Participating business represented 5% of the Company’s life insurance in-force at both December 31, 2014 and 2013. Participating policies represented 27%, 28% and 29% of gross life insurance premiums for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
PABs are equal to: (i) policy account values, which consist of an accumulation of gross premium payments (ii) credited interest, ranging from 1% to 13%, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations. | ||||||||||||||||||||
Guarantees | ||||||||||||||||||||
The Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of GMWBs and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in PABs and are further discussed in Note 9. Guarantees accounted for as insurance liabilities include: | ||||||||||||||||||||
Guarantee: | Measurement Assumptions: | |||||||||||||||||||
GMDBs | Ÿ | A return of purchase payment upon death even if the account value is reduced to zero. | Ÿ | Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. | ||||||||||||||||
Ÿ | An enhanced death benefit may be available for an additional fee. | Ÿ | Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. | |||||||||||||||||
Ÿ | Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. | |||||||||||||||||||
Ÿ | Benefit assumptions are based on the average benefits payable over a range of scenarios. | |||||||||||||||||||
GMIBs | Ÿ | After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. | Ÿ | Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. | ||||||||||||||||
Ÿ | Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. | Ÿ | Assumptions are consistent with those used for estimating GMDB liabilities. | |||||||||||||||||
Ÿ | Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. | |||||||||||||||||||
GMWBs | Ÿ | A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. | Ÿ | Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. | ||||||||||||||||
Ÿ | Certain contracts include guaranteed withdrawals that are life contingent. | |||||||||||||||||||
The Company also issues annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize (“two tier annuities”). These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. | ||||||||||||||||||||
Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows: | ||||||||||||||||||||
Annuity Contracts | Universal and Variable | |||||||||||||||||||
Life Contracts | ||||||||||||||||||||
GMDBs | GMIBs | Secondary | Paid-Up | Total | ||||||||||||||||
Guarantees | Guarantees | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Direct | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 84 | $ | 158 | $ | 261 | $ | 58 | $ | 561 | ||||||||||
Incurred guaranteed benefits | 31 | 174 | 79 | 10 | 294 | |||||||||||||||
Paid guaranteed benefits | (6 | ) | — | — | — | (6 | ) | |||||||||||||
Balance at December 31, 2012 | 109 | 332 | 340 | 68 | 849 | |||||||||||||||
Incurred guaranteed benefits | 44 | 58 | 77 | 6 | 185 | |||||||||||||||
Paid guaranteed benefits | (5 | ) | — | — | — | (5 | ) | |||||||||||||
Balance at December 31, 2013 | 148 | 390 | 417 | 74 | 1,029 | |||||||||||||||
Incurred guaranteed benefits | 51 | 68 | 124 | 8 | 251 | |||||||||||||||
Paid guaranteed benefits | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 196 | $ | 458 | $ | 541 | $ | 82 | $ | 1,277 | ||||||||||
Ceded | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 62 | $ | 52 | $ | 212 | $ | 41 | $ | 367 | ||||||||||
Incurred guaranteed benefits | 30 | 58 | 53 | 6 | 147 | |||||||||||||||
Paid guaranteed benefits | (6 | ) | — | — | — | (6 | ) | |||||||||||||
Balance at December 31, 2012 | 86 | 110 | 265 | 47 | 508 | |||||||||||||||
Incurred guaranteed benefits | 39 | 14 | 49 | 4 | 106 | |||||||||||||||
Paid guaranteed benefits | (5 | ) | — | — | — | (5 | ) | |||||||||||||
Balance at December 31, 2013 | 120 | 124 | 314 | 51 | 609 | |||||||||||||||
Incurred guaranteed benefits (1) | (80 | ) | (100 | ) | (9 | ) | 6 | (183 | ) | |||||||||||
Paid guaranteed benefits | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 37 | $ | 24 | $ | 305 | $ | 57 | $ | 423 | ||||||||||
Net | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 22 | $ | 106 | $ | 49 | $ | 17 | $ | 194 | ||||||||||
Incurred guaranteed benefits | 1 | 116 | 26 | 4 | 147 | |||||||||||||||
Paid guaranteed benefits | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2012 | 23 | 222 | 75 | 21 | 341 | |||||||||||||||
Incurred guaranteed benefits | 5 | 44 | 28 | 2 | 79 | |||||||||||||||
Paid guaranteed benefits | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2013 | 28 | 266 | 103 | 23 | 420 | |||||||||||||||
Incurred guaranteed benefits | 131 | 168 | 133 | 2 | 434 | |||||||||||||||
Paid guaranteed benefits | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2014 | $ | 159 | $ | 434 | $ | 236 | $ | 25 | $ | 854 | ||||||||||
______________ | ||||||||||||||||||||
-1 | See Note 6. | |||||||||||||||||||
Account balances of contracts with insurance guarantees were invested in separate account asset classes as follows at: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fund Groupings: | ||||||||||||||||||||
Equity | $ | 24,995 | $ | 24,915 | ||||||||||||||||
Balanced | 22,759 | 22,481 | ||||||||||||||||||
Bond | 4,561 | 4,551 | ||||||||||||||||||
Money Market | 150 | 179 | ||||||||||||||||||
Total | $ | 52,465 | $ | 52,126 | ||||||||||||||||
Based on the type of guarantee, the Company defines net amount at risk as listed below. These amounts include direct and assumed business, but exclude offsets from hedging or reinsurance, if any. | ||||||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||||||
In the Event of Death | ||||||||||||||||||||
Defined as the death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. | ||||||||||||||||||||
At Annuitization | ||||||||||||||||||||
Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. | ||||||||||||||||||||
Two Tier and Other Annuities | ||||||||||||||||||||
Two tier annuities are defined as the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date. These contracts apply a lower rate on funds if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. Other annuities are defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. | ||||||||||||||||||||
Universal and Variable Life Contracts | ||||||||||||||||||||
Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. | ||||||||||||||||||||
Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
In the | At | In the | At | |||||||||||||||||
Event of Death | Annuitization | Event of Death | Annuitization | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Annuity Contracts (1) | ||||||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||||||
Total contract account value | $ | 62,810 | $ | 29,474 | $ | 62,763 | $ | 28,934 | ||||||||||||
Separate account value | $ | 51,077 | $ | 28,347 | $ | 50,700 | $ | 27,738 | ||||||||||||
Net amount at risk | $ | 702 | $ | 244 | $ | 641 | $ | 123 | ||||||||||||
Average attained age of contractholders | 65 years | 63 years | 64 years | 62 years | ||||||||||||||||
Two Tier and Other Annuities | ||||||||||||||||||||
Account value | N/A | $ | 456 | N/A | $ | 397 | ||||||||||||||
Net amount at risk | N/A | $ | 153 | N/A | $ | 123 | ||||||||||||||
Average attained age of contractholders | N/A | 55 years | N/A | 54 years | ||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Secondary | Paid-Up | Secondary | Paid-Up | |||||||||||||||||
Guarantees | Guarantees | Guarantees | Guarantees | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Universal and Variable Life Contracts (1) | ||||||||||||||||||||
Account value (general and separate account) | $ | 8,213 | $ | 1,091 | $ | 7,871 | $ | 1,125 | ||||||||||||
Net amount at risk | $ | 78,758 | $ | 8,164 | $ | 81,888 | $ | 8,701 | ||||||||||||
Average attained age of policyholders | 54 years | 60 years | 53 years | 59 years | ||||||||||||||||
______________ | ||||||||||||||||||||
-1 | The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. | |||||||||||||||||||
Obligations Under Funding Agreements | ||||||||||||||||||||
The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain special purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the years ended December 31, 2014, 2013 and 2012, the Company issued $36.7 billion, $26.8 billion and $24.7 billion, respectively, and repaid $31.7 billion, $25.1 billion and $21.5 billion, respectively, of such funding agreements. At December 31, 2014 and 2013, liabilities for funding agreements outstanding, which are included in PABs, were $30.3 billion and $26.0 billion, respectively. | ||||||||||||||||||||
Metropolitan Life Insurance Company and General American Life Insurance Company (“GALIC”), a subsidiary, are members of regional banks in the Federal Home Loan Bank (“FHLB”) system (“FHLBanks”). Holdings of common stock of FHLBanks, included in equity securities, were as follows at: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
FHLB of NY | $ | 661 | $ | 700 | ||||||||||||||||
FHLB of Des Moines | $ | 50 | $ | 50 | ||||||||||||||||
The Company has also entered into funding agreements with FHLBanks and the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in PABs. Information related to such funding agreements was as follows at: | ||||||||||||||||||||
Liability | Collateral | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
FHLB of NY (1) | $ | 12,570 | $ | 12,770 | $ | 15,255 | -2 | $ | 14,287 | -2 | ||||||||||
Farmer Mac (3) | $ | 2,550 | $ | 2,550 | $ | 2,932 | $ | 2,929 | ||||||||||||
FHLB of Des Moines (1) | $ | 1,000 | $ | 1,000 | $ | 1,141 | -2 | $ | 1,118 | -2 | ||||||||||
______________ | ||||||||||||||||||||
-1 | Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, such FHLBank’s recovery on the collateral is limited to the amount of the Company’s liability to such FHLBank. | |||||||||||||||||||
-2 | Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. | |||||||||||||||||||
-3 | Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. | |||||||||||||||||||
Liabilities for Unpaid Claims and Claim Expenses | ||||||||||||||||||||
Information regarding the liabilities for unpaid claims and claim expenses relating to group accident and non-medical health policies and contracts, which are reported in future policy benefits and other policy-related balances, was as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at January 1, | $ | 7,022 | $ | 6,826 | $ | 6,622 | ||||||||||||||
Less: Reinsurance recoverables | 290 | 301 | 324 | |||||||||||||||||
Net balance at January 1, | 6,732 | 6,525 | 6,298 | |||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 5,099 | 4,762 | 4,320 | |||||||||||||||||
Prior years (1) | — | (12 | ) | (42 | ) | |||||||||||||||
Total incurred | 5,099 | 4,750 | 4,278 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | (3,228 | ) | (3,035 | ) | (2,626 | ) | ||||||||||||||
Prior years | (1,579 | ) | (1,508 | ) | (1,425 | ) | ||||||||||||||
Total paid | (4,807 | ) | (4,543 | ) | (4,051 | ) | ||||||||||||||
Net balance at December 31, | 7,024 | 6,732 | 6,525 | |||||||||||||||||
Add: Reinsurance recoverables | 286 | 290 | 301 | |||||||||||||||||
Balance at December 31, | $ | 7,310 | $ | 7,022 | $ | 6,826 | ||||||||||||||
______________ | ||||||||||||||||||||
-1 | During 2014, there were no changes to claims and claim adjustment expenses associated with prior years. During 2013 and 2012, as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years decreased due to a reduction in prior year dental and AD&D claims and improved loss ratio for non-medical health claim liabilities. | |||||||||||||||||||
Separate Accounts | ||||||||||||||||||||
Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $83.8 billion and $83.1 billion at December 31, 2014 and 2013, respectively, for which the policyholder assumes all investment risk, and separate accounts for which the Company contractually guarantees either a minimum return or account value to the policyholder which totaled $55.5 billion and $51.7 billion at December 31, 2014 and 2013, respectively. The latter category consisted primarily of funding agreements and participating close-out contracts. The average interest rate credited on these contracts was 2.25% and 2.23% at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | ||||||||||||
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | |||||||||||
See Note 1 for a description of capitalized acquisition costs. | ||||||||||||
Nonparticipating and Non-Dividend-Paying Traditional Contracts | ||||||||||||
The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the historic actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. | ||||||||||||
Participating, Dividend-Paying Traditional Contracts | ||||||||||||
The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7. Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. | ||||||||||||
Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts | ||||||||||||
The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. | ||||||||||||
Factors Impacting Amortization | ||||||||||||
Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. | ||||||||||||
The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. | ||||||||||||
Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. | ||||||||||||
Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. | ||||||||||||
Information regarding DAC and VOBA was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
DAC | ||||||||||||
Balance at January 1, | $ | 6,338 | $ | 5,752 | $ | 6,244 | ||||||
Capitalizations | 424 | 562 | 632 | |||||||||
Amortization related to: | ||||||||||||
Net investment gains (losses) and net derivative gains (losses) | (104 | ) | 227 | (270 | ) | |||||||
Other expenses | (583 | ) | (478 | ) | (709 | ) | ||||||
Total amortization | (687 | ) | (251 | ) | (979 | ) | ||||||
Unrealized investment gains (losses) | (170 | ) | 495 | (145 | ) | |||||||
Other (1) | — | (220 | ) | — | ||||||||
Balance at December 31, | 5,905 | 6,338 | 5,752 | |||||||||
VOBA | ||||||||||||
Balance at January 1, | 78 | 80 | 97 | |||||||||
Amortization related to: | ||||||||||||
Other expenses | (8 | ) | (10 | ) | (12 | ) | ||||||
Total amortization | (8 | ) | (10 | ) | (12 | ) | ||||||
Unrealized investment gains (losses) | — | 8 | (5 | ) | ||||||||
Balance at December 31, | 70 | 78 | 80 | |||||||||
Total DAC and VOBA | ||||||||||||
Balance at December 31, | $ | 5,975 | $ | 6,416 | $ | 5,832 | ||||||
______________ | ||||||||||||
-1 | The year ended December 31, 2013 includes ($220) million that was reclassified to DAC from other liabilities. The amounts reclassified relate to affiliated reinsurance agreements accounted for using the deposit method of accounting and represent the DAC amortization on the expense allowances assumed on the agreements from inception. These amounts were previously included in the calculated value of the deposit payable on these agreements and were recorded within other liabilities. | |||||||||||
Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Retail | $ | 5,544 | $ | 5,990 | ||||||||
Group, Voluntary & Worksite Benefits | 324 | 333 | ||||||||||
Corporate Benefit Funding | 106 | 93 | ||||||||||
Corporate & Other | 1 | — | ||||||||||
Total | $ | 5,975 | $ | 6,416 | ||||||||
Information regarding other intangibles was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
DSI | ||||||||||||
Balance at January 1, | $ | 175 | $ | 180 | $ | 184 | ||||||
Capitalization | 10 | 15 | 22 | |||||||||
Amortization | (28 | ) | (20 | ) | (26 | ) | ||||||
Unrealized investment gains (losses) | (35 | ) | — | — | ||||||||
Balance at December 31, | $ | 122 | $ | 175 | $ | 180 | ||||||
VODA and VOCRA | ||||||||||||
Balance at January 1, | $ | 325 | $ | 353 | $ | 378 | ||||||
Amortization | (30 | ) | (28 | ) | (25 | ) | ||||||
Balance at December 31, | $ | 295 | $ | 325 | $ | 353 | ||||||
Accumulated amortization | $ | 162 | $ | 132 | $ | 104 | ||||||
The estimated future amortization expense to be reported in other expenses for the next five years is as follows: | ||||||||||||
VOBA | VODA and VOCRA | |||||||||||
(In millions) | ||||||||||||
2015 | $ | 9 | $ | 30 | ||||||||
2016 | $ | 4 | $ | 30 | ||||||||
2017 | $ | 5 | $ | 28 | ||||||||
2018 | $ | 5 | $ | 26 | ||||||||
2019 | $ | 5 | $ | 24 | ||||||||
Reinsurance
Reinsurance | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Reinsurance | 6. Reinsurance | |||||||||||||||||||||||||||||||
The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated and unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. | ||||||||||||||||||||||||||||||||
Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8. | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
For its Retail Life & Other insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently reinsures 90% of the mortality risk in excess of $2 million for most products. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case by case basis, the Company may retain up to $20 million per life and reinsure 100% of amounts in excess of the amount the Company retains. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. | ||||||||||||||||||||||||||||||||
The Company’s Retail Annuities business assumes 90% of the fixed annuities issued by certain affiliates. The Company also reinsures 100% of the living and death benefit guarantees issued in connection with certain variable annuities issued since 2004 to an affiliate and portions of the living and death benefit guarantees issued in connection with its variable annuities issued prior to 2004 to affiliated and unaffiliated reinsurers. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The Company also assumes 100% of certain variable annuity risks issued by an affiliate. | ||||||||||||||||||||||||||||||||
Group, Voluntary & Worksite Benefits | ||||||||||||||||||||||||||||||||
For certain policies within the Group, Voluntary & Worksite Benefits segment, the Company generally retains most of the risk and only cedes particular risk on certain client arrangements. The majority of the Company’s reinsurance activity within this segment relates to client agreements for employer sponsored captive programs, risk-sharing agreements and multinational pooling. | ||||||||||||||||||||||||||||||||
Corporate Benefit Funding | ||||||||||||||||||||||||||||||||
The Company’s Corporate Benefit Funding segment has periodically engaged in reinsurance activities, on an opportunistic basis. The impact of these activities on the financial results of this segment has not been significant and there were no significant transactions during the periods presented. | ||||||||||||||||||||||||||||||||
Catastrophe Coverage | ||||||||||||||||||||||||||||||||
The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. | ||||||||||||||||||||||||||||||||
Reinsurance Recoverables | ||||||||||||||||||||||||||||||||
The Company reinsures its business through a diversified group of well-capitalized reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at December 31, 2014 and 2013, were not significant. | ||||||||||||||||||||||||||||||||
The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.3 billion and $2.4 billion of unsecured unaffiliated reinsurance recoverable balances at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
At December 31, 2014, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.4 billion, or 82%, were with the Company’s five largest unaffiliated ceded reinsurers, including $1.8 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. At December 31, 2013, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.4 billion, or 82%, were with the Company’s five largest unaffiliated ceded reinsurers, including $1.8 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. | ||||||||||||||||||||||||||||||||
The Company has reinsured with an unaffiliated third-party reinsurer, 59.25% of the closed block through a modified coinsurance agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit with the deposit recoverable. | ||||||||||||||||||||||||||||||||
The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: | ||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Premiums | ||||||||||||||||||||||||||||||||
Direct premiums | $ | 20,963 | $ | 20,290 | $ | 19,821 | ||||||||||||||||||||||||||
Reinsurance assumed | 1,673 | 1,469 | 1,350 | |||||||||||||||||||||||||||||
Reinsurance ceded | (1,252 | ) | (1,284 | ) | (1,291 | ) | ||||||||||||||||||||||||||
Net premiums | $ | 21,384 | $ | 20,475 | $ | 19,880 | ||||||||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||||
Direct universal life and investment-type product policy fees | $ | 3,029 | $ | 2,913 | $ | 2,763 | ||||||||||||||||||||||||||
Reinsurance assumed | 48 | 41 | 39 | |||||||||||||||||||||||||||||
Reinsurance ceded | (611 | ) | (591 | ) | (563 | ) | ||||||||||||||||||||||||||
Net universal life and investment-type product policy fees | $ | 2,466 | $ | 2,363 | $ | 2,239 | ||||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||
Direct other revenues | $ | 1,040 | $ | 970 | $ | 887 | ||||||||||||||||||||||||||
Reinsurance assumed | 2 | (2 | ) | (6 | ) | |||||||||||||||||||||||||||
Reinsurance ceded | 766 | 731 | 849 | |||||||||||||||||||||||||||||
Net other revenues | $ | 1,808 | $ | 1,699 | $ | 1,730 | ||||||||||||||||||||||||||
Policyholder benefits and claims | ||||||||||||||||||||||||||||||||
Direct policyholder benefits and claims | $ | 23,978 | $ | 23,305 | $ | 22,677 | ||||||||||||||||||||||||||
Reinsurance assumed | 1,416 | 1,225 | 1,208 | |||||||||||||||||||||||||||||
Reinsurance ceded | (1,539 | ) | (1,498 | ) | (1,616 | ) | ||||||||||||||||||||||||||
Net policyholder benefits and claims | $ | 23,855 | $ | 23,032 | $ | 22,269 | ||||||||||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||||
Direct interest credited to policyholder account balances | $ | 2,227 | $ | 2,322 | $ | 2,455 | ||||||||||||||||||||||||||
Reinsurance assumed | 35 | 35 | 33 | |||||||||||||||||||||||||||||
Reinsurance ceded | (88 | ) | (104 | ) | (98 | ) | ||||||||||||||||||||||||||
Net interest credited to policyholder account balances | $ | 2,174 | $ | 2,253 | $ | 2,390 | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||
Direct other expenses | $ | 5,132 | $ | 5,028 | $ | 5,328 | ||||||||||||||||||||||||||
Reinsurance assumed | 399 | 427 | 479 | |||||||||||||||||||||||||||||
Reinsurance ceded | 540 | 533 | 587 | |||||||||||||||||||||||||||||
Net other expenses | $ | 6,071 | $ | 5,988 | $ | 6,394 | ||||||||||||||||||||||||||
The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Direct | Assumed | Ceded | Total | Direct | Assumed | Ceded | Total | |||||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||||||||||
Sheet | Sheet | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 1,711 | $ | 649 | $ | 21,079 | $ | 23,439 | $ | 1,700 | $ | 527 | $ | 21,410 | $ | 23,637 | ||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 6,002 | 391 | (418 | ) | 5,975 | 6,567 | 330 | (481 | ) | 6,416 | ||||||||||||||||||||||
Total assets | $ | 7,713 | $ | 1,040 | $ | 20,661 | $ | 29,414 | $ | 8,267 | $ | 857 | $ | 20,929 | $ | 30,053 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Future policy benefits | $ | 115,143 | $ | 2,259 | $ | — | $ | 117,402 | $ | 110,072 | $ | 1,891 | $ | — | $ | 111,963 | ||||||||||||||||
Policyholder account balances | 95,601 | 301 | — | 95,902 | 92,246 | 252 | — | 92,498 | ||||||||||||||||||||||||
Other policy-related balances | 5,353 | 455 | 32 | 5,840 | 5,416 | 294 | (39 | ) | 5,671 | |||||||||||||||||||||||
Other liabilities | 10,350 | 7,020 | 16,077 | 33,447 | 8,690 | 7,046 | 16,444 | 32,180 | ||||||||||||||||||||||||
Total liabilities | $ | 226,447 | $ | 10,035 | $ | 16,109 | $ | 252,591 | $ | 216,424 | $ | 9,483 | $ | 16,405 | $ | 242,312 | ||||||||||||||||
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $13.8 billion at both December 31, 2014 and 2013. The deposit liabilities on reinsurance were $6.8 billion and $6.5 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Related Party Reinsurance Transactions | ||||||||||||||||||||||||||||||||
The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MetLife Insurance Company USA (“MetLife USA”), First MetLife Investors Insurance Company (“First MetLife”), MetLife Reinsurance Company of Charleston (“MRC”), MetLife Reinsurance Company of Vermont and Metropolitan Tower Life Insurance Company, all of which are related parties. | ||||||||||||||||||||||||||||||||
Information regarding the significant effects of affiliated reinsurance included in the consolidated statements of operations was as follows: | ||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Premiums | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 681 | $ | 451 | $ | 319 | ||||||||||||||||||||||||||
Reinsurance ceded | (36 | ) | (45 | ) | (54 | ) | ||||||||||||||||||||||||||
Net premiums | $ | 645 | $ | 406 | $ | 265 | ||||||||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 48 | $ | 40 | $ | 39 | ||||||||||||||||||||||||||
Reinsurance ceded | (240 | ) | (221 | ) | (216 | ) | ||||||||||||||||||||||||||
Net universal life and investment-type product policy fees | $ | (192 | ) | $ | (181 | ) | $ | (177 | ) | |||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 2 | $ | (2 | ) | $ | (6 | ) | ||||||||||||||||||||||||
Reinsurance ceded | 713 | 675 | 790 | |||||||||||||||||||||||||||||
Net other revenues | $ | 715 | $ | 673 | $ | 784 | ||||||||||||||||||||||||||
Policyholder benefits and claims | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 623 | $ | 402 | $ | 334 | ||||||||||||||||||||||||||
Reinsurance ceded | (197 | ) | (144 | ) | (177 | ) | ||||||||||||||||||||||||||
Net policyholder benefits and claims | $ | 426 | $ | 258 | $ | 157 | ||||||||||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 33 | $ | 31 | $ | 30 | ||||||||||||||||||||||||||
Reinsurance ceded | (88 | ) | (102 | ) | (98 | ) | ||||||||||||||||||||||||||
Net interest credited to policyholder account balances | $ | (55 | ) | $ | (71 | ) | $ | (68 | ) | |||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 298 | $ | 326 | $ | 357 | ||||||||||||||||||||||||||
Reinsurance ceded | 680 | 653 | 789 | |||||||||||||||||||||||||||||
Net other expenses | $ | 978 | $ | 979 | $ | 1,146 | ||||||||||||||||||||||||||
Information regarding the significant effects of affiliated reinsurance included in the consolidated balance sheets was as follows at: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Assumed | Ceded | Assumed | Ceded | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 257 | $ | 15,453 | $ | 109 | $ | 15,748 | ||||||||||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 370 | (231 | ) | 309 | (273 | ) | ||||||||||||||||||||||||||
Total assets | $ | 627 | $ | 15,222 | $ | 418 | $ | 15,475 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Future policy benefits | $ | 1,146 | $ | — | $ | 761 | $ | — | ||||||||||||||||||||||||
Policyholder account balances | 288 | — | 239 | — | ||||||||||||||||||||||||||||
Other policy-related balances | 264 | 32 | 67 | (39 | ) | |||||||||||||||||||||||||||
Other liabilities | 6,610 | 13,545 | 6,606 | 14,044 | ||||||||||||||||||||||||||||
Total liabilities | $ | 8,308 | $ | 13,577 | $ | 7,673 | $ | 14,005 | ||||||||||||||||||||||||
The Company ceded two blocks of business to two affiliates on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and increased/(decreased) the funds withheld balance by $20 million and ($11) million at December 31, 2014 and 2013, respectively. Net derivative gains (losses) associated with these embedded derivatives were ($39) million, $40 million and ($9) million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $657 million and ($62) million at December 31, 2014 and 2013, respectively. Net derivative gains (losses) associated with the embedded derivatives were $497 million, ($1.7) billion and $14 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and increased the funds withheld balance by $1.1 billion and $709 million at December 31, 2014 and 2013, respectively. Net derivative gains (losses) associated with the embedded derivative were ($389) million, $664 million and $135 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
In November 2014, MetLife Insurance Company of Connecticut (“MICC”), a wholly-owned subsidiary of MetLife, Inc., re-domesticated from Connecticut to Delaware, changed its name to MetLife Insurance Company USA and merged with its subsidiary, MetLife Investors USA Insurance Company, and its affiliate, MetLife Investors Insurance Company, each a U.S. insurance company that issued variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd. (“Exeter”), a former offshore, reinsurance subsidiary of MetLife, Inc. and affiliate of MICC that mainly reinsured guarantees associated with variable annuity products (the “Mergers”). The surviving entity of the Mergers was MetLife USA. Effective January 1, 2014, following receipt of New York State Department of Financial Services (the “Department of Financial Services”) approval, MICC withdrew its license to issue insurance policies and annuity contracts in New York. | ||||||||||||||||||||||||||||||||
Prior to the Mergers, certain related party transactions were consummated as summarized below. See Notes 8 and 9 for information regarding additional related party transactions. | ||||||||||||||||||||||||||||||||
• | Effective January 1, 2014, MICC reinsured with Metropolitan Life Insurance Company all existing New York insurance policies and annuity contracts that include a separate account feature. As a result of the reinsurance agreements, the significant effects to the Company were increases in other invested assets of $192 million, in other liabilities of $572 million, in future policy benefits of $128 million and in cash and cash equivalents and total investments of $494 million received from MICC. | |||||||||||||||||||||||||||||||
• | In October 2014, the Company recaptured a block of universal life secondary guarantee business ceded to Exeter on a 75% coinsurance with funds withheld basis. As a result of this recapture, the significant effects to the Company were decreases in premiums, reinsurance and other receivables of $492 million, and in other liabilities of $432 million, as well as increases in DAC of $30 million and in other policy-related balances of $9 million. | |||||||||||||||||||||||||||||||
• | In November 2014, the Company partially recaptured risks related to guaranteed minimum benefit guarantees on certain variable annuities previously ceded to Exeter. As a result of this recapture, the significant effects to the Company were decreases in premiums, reinsurance and other receivables of $719 million, and in other liabilities of $447 million, as well as increases in DAC of $7 million and in cash and cash equivalents of $324 million. There was also an increase in net income of $54 million which was reflected in other income. | |||||||||||||||||||||||||||||||
• | Effective November 1, 2014, the Company entered into an agreement to assume 100% of certain variable annuities including guaranteed minimum benefit guarantees on a modified coinsurance basis from First MetLife. As a result of this reinsurance agreement, the significant effects to the Company were decreases in other liabilities of $269 million and in cash and cash equivalents paid to First MetLife of $218 million. | |||||||||||||||||||||||||||||||
The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.1 billion and $1.2 billion of unsecured affiliated reinsurance recoverable balances at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Affiliated reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on affiliated reinsurance were $11.7 billion and $11.8 billion at December 31, 2014 and 2013, respectively. The deposit liabilities on affiliated reinsurance were $6.7 billion and $6.5 billion at December 31, 2014 and 2013, respectively. |
Closed_Block
Closed Block | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Closed Block Disclosure [Abstract] | |||||||||||||
Closed Block | 7. Closed Block | ||||||||||||
On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience. | |||||||||||||
The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years. | |||||||||||||
The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess of the actual cumulative earnings of the closed block over the expected cumulative earnings to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings. | |||||||||||||
Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. | |||||||||||||
Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. | |||||||||||||
Information regarding the closed block liabilities and assets designated to the closed block was as follows at: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In millions) | |||||||||||||
Closed Block Liabilities | |||||||||||||
Future policy benefits | $ | 41,667 | $ | 42,076 | |||||||||
Other policy-related balances | 265 | 298 | |||||||||||
Policyholder dividends payable | 461 | 456 | |||||||||||
Policyholder dividend obligation | 3,155 | 1,771 | |||||||||||
Current income tax payable | 1 | 18 | |||||||||||
Other liabilities | 646 | 582 | |||||||||||
Total closed block liabilities | 46,195 | 45,201 | |||||||||||
Assets Designated to the Closed Block | |||||||||||||
Investments: | |||||||||||||
Fixed maturity securities available-for-sale, at estimated fair value | 29,199 | 28,374 | |||||||||||
Equity securities available-for-sale, at estimated fair value | 91 | 86 | |||||||||||
Mortgage loans | 6,076 | 6,155 | |||||||||||
Policy loans | 4,646 | 4,669 | |||||||||||
Real estate and real estate joint ventures | 666 | 492 | |||||||||||
Other invested assets | 1,065 | 814 | |||||||||||
Total investments | 41,743 | 40,590 | |||||||||||
Cash and cash equivalents | 227 | 238 | |||||||||||
Accrued investment income | 477 | 477 | |||||||||||
Premiums, reinsurance and other receivables | 67 | 98 | |||||||||||
Deferred income tax assets | 289 | 293 | |||||||||||
Total assets designated to the closed block | 42,803 | 41,696 | |||||||||||
Excess of closed block liabilities over assets designated to the closed block | 3,392 | 3,505 | |||||||||||
Amounts included in AOCI: | |||||||||||||
Unrealized investment gains (losses), net of income tax | 2,291 | 1,502 | |||||||||||
Unrealized gains (losses) on derivatives, net of income tax | 28 | (3 | ) | ||||||||||
Allocated to policyholder dividend obligation, net of income tax | (2,051 | ) | (1,151 | ) | |||||||||
Total amounts included in AOCI | 268 | 348 | |||||||||||
Maximum future earnings to be recognized from closed block assets and liabilities | $ | 3,660 | $ | 3,853 | |||||||||
Information regarding the closed block policyholder dividend obligation was as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions) | |||||||||||||
Balance at January 1, | $ | 1,771 | $ | 3,828 | $ | 2,919 | |||||||
Change in unrealized investment and derivative gains (losses) | 1,384 | (2,057 | ) | 909 | |||||||||
Balance at December 31, | $ | 3,155 | $ | 1,771 | $ | 3,828 | |||||||
Information regarding the closed block revenues and expenses was as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions) | |||||||||||||
Revenues | |||||||||||||
Premiums | $ | 1,918 | $ | 1,987 | $ | 2,139 | |||||||
Net investment income | 2,093 | 2,130 | 2,188 | ||||||||||
Net investment gains (losses) | 7 | 25 | 61 | ||||||||||
Net derivative gains (losses) | 20 | (6 | ) | (12 | ) | ||||||||
Total revenues | 4,038 | 4,136 | 4,376 | ||||||||||
Expenses | |||||||||||||
Policyholder benefits and claims | 2,598 | 2,702 | 2,783 | ||||||||||
Policyholder dividends | 988 | 979 | 1,072 | ||||||||||
Other expenses | 155 | 165 | 179 | ||||||||||
Total expenses | 3,741 | 3,846 | 4,034 | ||||||||||
Revenues, net of expenses before provision for income tax expense (benefit) | 297 | 290 | 342 | ||||||||||
Provision for income tax expense (benefit) | 104 | 101 | 120 | ||||||||||
Revenues, net of expenses and provision for income tax expense (benefit) from continuing operations | 193 | 189 | 222 | ||||||||||
Revenues, net of expenses and provision for income tax expense (benefit) from discontinued operations | — | — | 10 | ||||||||||
Revenues, net of expenses and provision for income tax expense (benefit) | $ | 193 | $ | 189 | $ | 232 | |||||||
Metropolitan Life Insurance Company charges the closed block with federal income taxes, state and local premium taxes and other additive state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Investments | 8. Investments | |||||||||||||||||||||||||||||||||||||||
See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies. | ||||||||||||||||||||||||||||||||||||||||
Investment Risks and Uncertainties | ||||||||||||||||||||||||||||||||||||||||
Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||
The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. | ||||||||||||||||||||||||||||||||||||||||
The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”), certain structured investment transactions and trading and FVO securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities AFS | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities AFS by Sector | ||||||||||||||||||||||||||||||||||||||||
The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, ABS and commercial mortgage-backed securities (“CMBS”). | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Cost or | Gross Unrealized | Estimated | Cost or | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Gains | Temporary | OTTI | Value | Cost | Gains | Temporary | OTTI | Value | |||||||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 59,532 | $ | 6,246 | $ | 421 | $ | — | $ | 65,357 | $ | 60,244 | $ | 4,678 | $ | 693 | $ | — | $ | 64,229 | ||||||||||||||||||||
U.S. Treasury and agency | 34,391 | 4,698 | 19 | — | 39,070 | 29,508 | 1,730 | 694 | — | 30,544 | ||||||||||||||||||||||||||||||
Foreign corporate | 28,395 | 1,934 | 511 | — | 29,818 | 27,082 | 1,959 | 285 | — | 28,756 | ||||||||||||||||||||||||||||||
RMBS | 26,893 | 1,493 | 157 | 66 | 28,163 | 24,119 | 1,109 | 368 | 150 | 24,710 | ||||||||||||||||||||||||||||||
ABS (1) | 8,206 | 102 | 82 | — | 8,226 | 7,789 | 151 | 117 | (1 | ) | 7,824 | |||||||||||||||||||||||||||||
CMBS | 7,705 | 241 | 33 | — | 7,913 | 8,203 | 262 | 89 | — | 8,376 | ||||||||||||||||||||||||||||||
State and political subdivision | 5,329 | 1,197 | 6 | — | 6,520 | 5,386 | 467 | 76 | — | 5,777 | ||||||||||||||||||||||||||||||
Foreign government | 3,153 | 761 | 70 | — | 3,844 | 3,040 | 597 | 107 | — | 3,530 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 173,604 | $ | 16,672 | $ | 1,299 | $ | 66 | $ | 188,911 | $ | 165,371 | $ | 10,953 | $ | 2,429 | $ | 149 | $ | 173,746 | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 1,236 | $ | 142 | $ | 26 | $ | — | $ | 1,352 | $ | 1,070 | $ | 97 | $ | 3 | $ | — | $ | 1,164 | ||||||||||||||||||||
Non-redeemable preferred stock | 690 | 53 | 30 | — | 713 | 743 | 62 | 77 | — | 728 | ||||||||||||||||||||||||||||||
Total equity securities | $ | 1,926 | $ | 195 | $ | 56 | $ | — | $ | 2,065 | $ | 1,813 | $ | 159 | $ | 80 | $ | — | $ | 1,892 | ||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The noncredit loss component of OTTI losses was in an unrealized gain position of $1 million for ABS at December 31, 2013, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “—Net Unrealized Investment Gains (Losses).” | |||||||||||||||||||||||||||||||||||||||
The Company held non-income producing fixed maturity securities with an estimated fair value of $6 million and $38 million with unrealized gains (losses) of $5 million and $12 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Methodology for Amortization of Premium and Accretion of Discount on Structured Securities | ||||||||||||||||||||||||||||||||||||||||
Amortization of premium and accretion of discount on structured securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and ABS are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive mortgage-backed and ABS and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and ABS, the effective yield is recalculated on a retrospective basis. | ||||||||||||||||||||||||||||||||||||||||
Maturities of Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||||||||||||||||||||||
Cost | Fair | Cost | Fair | |||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,841 | $ | 5,902 | $ | 6,411 | $ | 6,516 | ||||||||||||||||||||||||||||||||
Due after one year through five years | 36,600 | 38,115 | 34,696 | 36,556 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 39,257 | 41,519 | 35,725 | 38,347 | ||||||||||||||||||||||||||||||||||||
Due after ten years | 49,102 | 59,073 | 48,428 | 51,417 | ||||||||||||||||||||||||||||||||||||
Subtotal | 130,800 | 144,609 | 125,260 | 132,836 | ||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) | 42,804 | 44,302 | 40,111 | 40,910 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 173,604 | $ | 188,911 | $ | 165,371 | $ | 173,746 | ||||||||||||||||||||||||||||||||
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, ABS and CMBS are shown separately, as they are not due at a single maturity. | ||||||||||||||||||||||||||||||||||||||||
Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector | ||||||||||||||||||||||||||||||||||||||||
The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Equal to or Greater than 12 Months | Less than 12 Months | Equal to or Greater than 12 Months | |||||||||||||||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 8,950 | $ | 260 | $ | 2,251 | $ | 161 | $ | 8,512 | $ | 426 | $ | 1,948 | $ | 267 | ||||||||||||||||||||||||
U.S. Treasury and agency | 3,933 | 6 | 982 | 13 | 10,077 | 687 | 33 | 7 | ||||||||||||||||||||||||||||||||
Foreign corporate | 7,052 | 397 | 1,165 | 114 | 4,217 | 176 | 952 | 109 | ||||||||||||||||||||||||||||||||
RMBS | 3,141 | 63 | 1,900 | 160 | 8,194 | 291 | 1,675 | 227 | ||||||||||||||||||||||||||||||||
ABS | 3,147 | 45 | 732 | 37 | 1,701 | 28 | 530 | 88 | ||||||||||||||||||||||||||||||||
CMBS | 772 | 20 | 461 | 13 | 2,022 | 74 | 221 | 15 | ||||||||||||||||||||||||||||||||
State and political subdivision | 26 | — | 76 | 6 | 737 | 44 | 92 | 32 | ||||||||||||||||||||||||||||||||
Foreign government | 327 | 32 | 265 | 38 | 763 | 94 | 54 | 13 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 27,348 | $ | 823 | $ | 7,832 | $ | 542 | $ | 36,223 | $ | 1,820 | $ | 5,505 | $ | 758 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 98 | $ | 26 | $ | 1 | $ | — | $ | 37 | $ | 3 | $ | — | $ | — | ||||||||||||||||||||||||
Non-redeemable preferred stock | 32 | — | 139 | 30 | 222 | 41 | 125 | 36 | ||||||||||||||||||||||||||||||||
Total equity securities | $ | 130 | $ | 26 | $ | 140 | $ | 30 | $ | 259 | $ | 44 | $ | 125 | $ | 36 | ||||||||||||||||||||||||
Total number of securities in an | 1,997 | 642 | 2,211 | 469 | ||||||||||||||||||||||||||||||||||||
unrealized loss position | ||||||||||||||||||||||||||||||||||||||||
Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities | ||||||||||||||||||||||||||||||||||||||||
Evaluation and Measurement Methodologies | ||||||||||||||||||||||||||||||||||||||||
Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to structured securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. | ||||||||||||||||||||||||||||||||||||||||
The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: | ||||||||||||||||||||||||||||||||||||||||
• | The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. | |||||||||||||||||||||||||||||||||||||||
• | When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. | |||||||||||||||||||||||||||||||||||||||
• | Additional considerations are made when assessing the unique features that apply to certain structured securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. | |||||||||||||||||||||||||||||||||||||||
• | When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. | |||||||||||||||||||||||||||||||||||||||
With respect to securities that have attributes of debt and equity (perpetual hybrid securities), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security’s cost and its estimated fair value with a corresponding charge to earnings. | ||||||||||||||||||||||||||||||||||||||||
The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. | ||||||||||||||||||||||||||||||||||||||||
In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. | ||||||||||||||||||||||||||||||||||||||||
Current Period Evaluation | ||||||||||||||||||||||||||||||||||||||||
Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at December 31, 2014. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. | ||||||||||||||||||||||||||||||||||||||||
Gross unrealized losses on fixed maturity securities decreased $1.2 billion during the year ended December 31, 2014 from $2.6 billion to $1.4 billion. The decrease in gross unrealized losses for the year ended December 31, 2014, was primarily attributable to a decrease in interest rates, partially offset by widening credit spreads. | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2014, $67 million of the total $1.4 billion of gross unrealized losses were from 27 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. | ||||||||||||||||||||||||||||||||||||||||
Investment Grade Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
Of the $67 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $24 million, or 36%, were related to gross unrealized losses on 12 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. | ||||||||||||||||||||||||||||||||||||||||
Below Investment Grade Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
Of the $67 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $43 million, or 64%, were related to gross unrealized losses on 15 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans) and ABS (primarily foreign ABS) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over valuations of residential real estate supporting non-agency RMBS. Management evaluates non-agency RMBS and ABS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security. | ||||||||||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Gross unrealized losses on equity securities decreased $24 million during the year ended December 31, 2014 from $80 million to $56 million. Of the $56 million, $23 million were from six equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater, all of which were financial services industry investment grade non-redeemable preferred stock, of which 26% were rated A or better. | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans are summarized as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Carrying | % of | Carrying | % of | |||||||||||||||||||||||||||||||||||||
Value | Total | Value | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-investment: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 32,482 | 66.2 | % | $ | 33,072 | 71.9 | % | ||||||||||||||||||||||||||||||||
Agricultural | 11,033 | 22.5 | 11,025 | 24 | ||||||||||||||||||||||||||||||||||||
Residential | 5,494 | 11.2 | 1,858 | 4 | ||||||||||||||||||||||||||||||||||||
Subtotal (1) | 49,009 | 99.9 | 45,955 | 99.9 | ||||||||||||||||||||||||||||||||||||
Valuation allowances | (258 | ) | (0.5 | ) | (272 | ) | (0.6 | ) | ||||||||||||||||||||||||||||||||
Subtotal mortgage loans held-for-investment, net | 48,751 | 99.4 | 45,683 | 99.3 | ||||||||||||||||||||||||||||||||||||
Residential — FVO | 308 | 0.6 | 338 | 0.7 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans held-for-investment, net | 49,059 | 100 | 46,021 | 100 | ||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-sale | — | — | 3 | — | ||||||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 49,059 | 100 | % | $ | 46,024 | 100 | % | ||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Purchases of mortgage loans were $4.7 billion and $2.2 billion for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-investment by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at and for the years ended: | ||||||||||||||||||||||||||||||||||||||||
Evaluated Individually for Credit Losses | Evaluated Collectively for Credit Losses | Impaired Loans | ||||||||||||||||||||||||||||||||||||||
Impaired Loans with a Valuation Allowance | Impaired Loans without a Valuation Allowance | |||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Valuation | Unpaid Principal Balance | Recorded | Recorded | Valuation | Carrying | Average | ||||||||||||||||||||||||||||||||
Allowances | Investment | Investment | Allowances | Value | Recorded | |||||||||||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 75 | $ | 75 | $ | 24 | $ | 84 | $ | 84 | $ | 32,323 | $ | 158 | $ | 135 | $ | 298 | ||||||||||||||||||||||
Agricultural | 47 | 45 | 2 | 14 | 13 | 10,975 | 33 | 56 | 76 | |||||||||||||||||||||||||||||||
Residential | — | — | — | 40 | 37 | 5,457 | 41 | 37 | 17 | |||||||||||||||||||||||||||||||
Total | $ | 122 | $ | 120 | $ | 26 | $ | 138 | $ | 134 | $ | 48,755 | $ | 232 | $ | 228 | $ | 391 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 173 | $ | 169 | $ | 49 | $ | 247 | $ | 246 | $ | 32,657 | $ | 164 | $ | 366 | $ | 430 | ||||||||||||||||||||||
Agricultural | 64 | 62 | 7 | 35 | 34 | 10,929 | 33 | 89 | 151 | |||||||||||||||||||||||||||||||
Residential | — | — | — | 5 | 4 | 1,854 | 19 | 4 | 2 | |||||||||||||||||||||||||||||||
Total | $ | 237 | $ | 231 | $ | 56 | $ | 287 | $ | 284 | $ | 45,440 | $ | 216 | $ | 459 | $ | 583 | ||||||||||||||||||||||
The average recorded investment for commercial, agricultural and residential mortgage loans was $384 million, $201 million and $0, respectively, for the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||
Valuation Allowance Rollforward by Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
The changes in the valuation allowance, by portfolio segment, were as follows: | ||||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 318 | $ | 75 | $ | — | $ | 393 | ||||||||||||||||||||||||||||||||
Provision (release) | (50 | ) | 2 | — | (48 | ) | ||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | (12 | ) | (24 | ) | — | (36 | ) | |||||||||||||||||||||||||||||||||
Transfers to held-for-sale | — | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 256 | 48 | — | 304 | ||||||||||||||||||||||||||||||||||||
Provision (release) | (43 | ) | 3 | 19 | (21 | ) | ||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | — | (11 | ) | — | (11 | ) | ||||||||||||||||||||||||||||||||||
Transfers to held-for-sale | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 213 | 40 | 19 | 272 | ||||||||||||||||||||||||||||||||||||
Provision (release) | (8 | ) | (4 | ) | 27 | 15 | ||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | (23 | ) | (1 | ) | (5 | ) | (29 | ) | ||||||||||||||||||||||||||||||||
Transfers to held-for-sale | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 182 | $ | 35 | $ | 41 | $ | 258 | ||||||||||||||||||||||||||||||||
Valuation Allowance Methodology | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. | ||||||||||||||||||||||||||||||||||||||||
Commercial and Agricultural Mortgage Loan Portfolio Segments | ||||||||||||||||||||||||||||||||||||||||
The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. | ||||||||||||||||||||||||||||||||||||||||
All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. | ||||||||||||||||||||||||||||||||||||||||
For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis, with a portion of the loan portfolio updated each quarter. | ||||||||||||||||||||||||||||||||||||||||
For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. | ||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loan Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
The Company’s residential mortgage loan portfolio is comprised primarily of closed end, amortizing residential mortgage loans. For evaluations of residential mortgage loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, when appropriate, for differences from market conditions and the Company’s historical experience. In contrast to the commercial and agricultural mortgage loan portfolios, residential mortgage loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuation allowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique to the residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential mortgage loans when they have been restructured and are established using the methodology described above for all loan portfolio segments. | ||||||||||||||||||||||||||||||||||||||||
For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in non-accrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. | ||||||||||||||||||||||||||||||||||||||||
Credit Quality of Commercial Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of commercial mortgage loans held-for-investment, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Estimated | % of | ||||||||||||||||||||||||||||||||||||||
Debt Service Coverage Ratios | Total | % of | Fair | Total | ||||||||||||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | Value | ||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 26,810 | $ | 746 | $ | 761 | $ | 28,317 | 87.2 | % | $ | 29,860 | 87.7 | % | ||||||||||||||||||||||||||
65% to 75% | 2,783 | 391 | 86 | 3,260 | 10 | 3,322 | 9.8 | |||||||||||||||||||||||||||||||||
76% to 80% | 109 | — | 8 | 117 | 0.4 | 121 | 0.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 384 | 256 | 148 | 788 | 2.4 | 736 | 2.2 | |||||||||||||||||||||||||||||||||
Total | $ | 30,086 | $ | 1,393 | $ | 1,003 | $ | 32,482 | 100 | % | $ | 34,039 | 100 | % | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 24,585 | $ | 476 | $ | 596 | $ | 25,657 | 77.6 | % | $ | 26,900 | 78.4 | % | ||||||||||||||||||||||||||
65% to 75% | 5,219 | 438 | 104 | 5,761 | 17.4 | 5,852 | 17.1 | |||||||||||||||||||||||||||||||||
76% to 80% | 444 | 157 | 189 | 790 | 2.4 | 776 | 2.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 583 | 205 | 76 | 864 | 2.6 | 769 | 2.2 | |||||||||||||||||||||||||||||||||
Total | $ | 30,831 | $ | 1,276 | $ | 965 | $ | 33,072 | 100 | % | $ | 34,297 | 100 | % | ||||||||||||||||||||||||||
Credit Quality of Agricultural Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of agricultural mortgage loans held-for-investment were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 10,462 | 94.8 | % | $ | 10,165 | 92.2 | % | ||||||||||||||||||||||||||||||||
65% to 75% | 469 | 4.2 | 659 | 6 | ||||||||||||||||||||||||||||||||||||
76% to 80% | 17 | 0.2 | 84 | 0.8 | ||||||||||||||||||||||||||||||||||||
Greater than 80% | 85 | 0.8 | 117 | 1 | ||||||||||||||||||||||||||||||||||||
Total | $ | 11,033 | 100 | % | $ | 11,025 | 100 | % | ||||||||||||||||||||||||||||||||
The estimated fair value of agricultural mortgage loans held-for-investment was $11.4 billion and $11.3 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Credit Quality of Residential Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of residential mortgage loans held-for-investment were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Performance indicators: | ||||||||||||||||||||||||||||||||||||||||
Performing | $ | 5,345 | 97.3 | % | $ | 1,812 | 97.5 | % | ||||||||||||||||||||||||||||||||
Nonperforming | 149 | 2.7 | 46 | 2.5 | ||||||||||||||||||||||||||||||||||||
Total | $ | 5,494 | 100 | % | $ | 1,858 | 100 | % | ||||||||||||||||||||||||||||||||
The estimated fair value of residential mortgage loans held-for-investment was $5.6 billion and $1.8 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Past Due and Interest Accrual Status of Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2014 and 2013. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Past Due | Nonaccrual Status | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 75 | $ | 169 | ||||||||||||||||||||||||||||||||
Agricultural | 1 | 44 | 41 | 47 | ||||||||||||||||||||||||||||||||||||
Residential | 149 | 46 | 149 | 46 | ||||||||||||||||||||||||||||||||||||
Total | $ | 150 | $ | 90 | $ | 265 | $ | 262 | ||||||||||||||||||||||||||||||||
Mortgage Loans Modified in a Troubled Debt Restructuring | ||||||||||||||||||||||||||||||||||||||||
For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance. During the years ended December 31, 2014 and 2013, the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring. | ||||||||||||||||||||||||||||||||||||||||
Other Invested Assets | ||||||||||||||||||||||||||||||||||||||||
Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9), tax credit and renewable energy partnerships, loans to affiliates (see “— Related Party Investment Transactions”) and leveraged and direct financing leases. | ||||||||||||||||||||||||||||||||||||||||
Leveraged and Direct Financing Leases | ||||||||||||||||||||||||||||||||||||||||
Investment in leveraged and direct financing leases consisted of the following at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Leveraged Leases | Direct Financing Leases | Leveraged Leases | Direct Financing Leases | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Rental receivables, net | $ | 1,320 | $ | 406 | $ | 1,393 | $ | 413 | ||||||||||||||||||||||||||||||||
Estimated residual values | 827 | 57 | 853 | 52 | ||||||||||||||||||||||||||||||||||||
Subtotal | 2,147 | 463 | 2,246 | 465 | ||||||||||||||||||||||||||||||||||||
Unearned income | (686 | ) | (178 | ) | (742 | ) | (177 | ) | ||||||||||||||||||||||||||||||||
Investment in leases, net of non-recourse debt | $ | 1,461 | $ | 285 | $ | 1,504 | $ | 288 | ||||||||||||||||||||||||||||||||
Rental receivables are generally due in periodic installments. The payment periods for leveraged leases range from one to 15 years but in certain circumstances can be over 30 years, while the payment periods for direct financing leases range from one to 22 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At December 31, 2014 and 2013, all leveraged lease receivables and direct financing rental receivables were performing. | ||||||||||||||||||||||||||||||||||||||||
The deferred income tax liability related to leveraged leases was $1.3 billion and $1.4 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
The components of income from investments in leveraged and direct financing leases, excluding net investment gains (losses), were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Leveraged Leases | Direct Financing Leases | Leveraged Leases | Direct Financing Leases | Leveraged Leases | Direct Financing Leases | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Income from investment in leases | $ | 51 | $ | 19 | $ | 60 | $ | 17 | $ | 34 | $ | 15 | ||||||||||||||||||||||||||||
Less: Income tax expense on leases | 18 | 7 | 21 | 6 | 12 | 5 | ||||||||||||||||||||||||||||||||||
Investment income after income tax | $ | 33 | $ | 12 | $ | 39 | $ | 11 | $ | 22 | $ | 10 | ||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||||||||||
The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $1.0 billion and $790 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Net Unrealized Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) on fixed maturity and equity securities AFS and the effect on DAC, VOBA, DSI, future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. | ||||||||||||||||||||||||||||||||||||||||
The components of net unrealized investment gains (losses), included in AOCI, were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 15,374 | $ | 8,521 | $ | 19,120 | ||||||||||||||||||||||||||||||||||
Fixed maturity securities with noncredit OTTI losses in AOCI | (66 | ) | (149 | ) | (256 | ) | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 15,308 | 8,372 | 18,864 | |||||||||||||||||||||||||||||||||||||
Equity securities | 173 | 83 | (13 | ) | ||||||||||||||||||||||||||||||||||||
Derivatives | 1,649 | 361 | 1,052 | |||||||||||||||||||||||||||||||||||||
Short-term investments | — | — | (2 | ) | ||||||||||||||||||||||||||||||||||||
Other | 87 | 5 | 18 | |||||||||||||||||||||||||||||||||||||
Subtotal | 17,217 | 8,821 | 19,919 | |||||||||||||||||||||||||||||||||||||
Amounts allocated from: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (1,964 | ) | (610 | ) | (5,120 | ) | ||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (3 | ) | 5 | 12 | ||||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (918 | ) | (721 | ) | (1,231 | ) | ||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (3,155 | ) | (1,771 | ) | (3,828 | ) | ||||||||||||||||||||||||||||||||||
Subtotal | (6,040 | ) | (3,097 | ) | (10,167 | ) | ||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 25 | 51 | 86 | |||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (3,928 | ) | (2,070 | ) | (3,498 | ) | ||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 7,274 | 3,705 | 6,340 | |||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $ | 7,273 | $ | 3,704 | $ | 6,339 | ||||||||||||||||||||||||||||||||||
The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | (149 | ) | $ | (256 | ) | ||||||||||||||||||||||||||||||||||
Noncredit OTTI losses and subsequent changes recognized | 10 | 47 | ||||||||||||||||||||||||||||||||||||||
Securities sold with previous noncredit OTTI loss | 41 | 114 | ||||||||||||||||||||||||||||||||||||||
Subsequent changes in estimated fair value | 32 | (54 | ) | |||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | (66 | ) | $ | (149 | ) | ||||||||||||||||||||||||||||||||||
The changes in net unrealized investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 3,704 | $ | 6,339 | $ | 4,868 | ||||||||||||||||||||||||||||||||||
Fixed maturity securities on which noncredit OTTI losses have been recognized | 83 | 107 | 266 | |||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) during the year | 8,313 | (11,205 | ) | 4,679 | ||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (1,354 | ) | 4,510 | (1,625 | ) | |||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (8 | ) | (7 | ) | (21 | ) | ||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (197 | ) | 510 | (129 | ) | |||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (1,384 | ) | 2,057 | (909 | ) | |||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (26 | ) | (35 | ) | (86 | ) | ||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (1,858 | ) | 1,428 | (704 | ) | |||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 7,273 | 3,704 | 6,339 | |||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 7,273 | $ | 3,704 | $ | 6,339 | ||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | $ | 3,569 | $ | (2,635 | ) | $ | 1,471 | |||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | — | — | — | |||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $ | 3,569 | $ | (2,635 | ) | $ | 1,471 | |||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||||||||||
There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
Securities Lending | ||||||||||||||||||||||||||||||||||||||||
Elements of the securities lending program are presented below at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Securities on loan: (1) | ||||||||||||||||||||||||||||||||||||||||
Amortized cost | $ | 19,099 | $ | 18,829 | ||||||||||||||||||||||||||||||||||||
Estimated fair value | $ | 21,185 | $ | 19,153 | ||||||||||||||||||||||||||||||||||||
Cash collateral on deposit from counterparties (2) | $ | 21,635 | $ | 19,673 | ||||||||||||||||||||||||||||||||||||
Security collateral on deposit from counterparties (3) | $ | 19 | $ | — | ||||||||||||||||||||||||||||||||||||
Reinvestment portfolio — estimated fair value | $ | 22,046 | $ | 19,822 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Included within fixed maturity securities, short-term investments and equity securities. | |||||||||||||||||||||||||||||||||||||||
-2 | Included within payables for collateral under securities loaned and other transactions. | |||||||||||||||||||||||||||||||||||||||
-3 | Security collateral on deposit from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||
Invested Assets on Deposit and Pledged as Collateral | ||||||||||||||||||||||||||||||||||||||||
Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Invested assets on deposit (regulatory deposits) | $ | 1,421 | $ | 1,338 | ||||||||||||||||||||||||||||||||||||
Invested assets pledged as collateral (1) | 20,712 | 19,555 | ||||||||||||||||||||||||||||||||||||||
Total invested assets on deposit and pledged as collateral | $ | 22,133 | $ | 20,893 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4), and derivative transactions (see Note 9). | |||||||||||||||||||||||||||||||||||||||
See “— Securities Lending” for information regarding securities on loan and Note 7 for information regarding investments designated to the closed block. | ||||||||||||||||||||||||||||||||||||||||
Purchased Credit Impaired Investments | ||||||||||||||||||||||||||||||||||||||||
Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired (“PCI”) investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. | ||||||||||||||||||||||||||||||||||||||||
The Company’s PCI fixed maturity securities were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Outstanding principal and interest balance (1) | $ | 4,614 | $ | 4,653 | ||||||||||||||||||||||||||||||||||||
Carrying value (2) | $ | 3,651 | $ | 3,601 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. | |||||||||||||||||||||||||||||||||||||||
-2 | Estimated fair value plus accrued interest. | |||||||||||||||||||||||||||||||||||||||
The following table presents information about PCI fixed maturity securities acquired during the periods indicated: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Contractually required payments (including interest) | $ | 820 | $ | 1,612 | ||||||||||||||||||||||||||||||||||||
Cash flows expected to be collected (1) | $ | 644 | $ | 1,248 | ||||||||||||||||||||||||||||||||||||
Fair value of investments acquired | $ | 433 | $ | 841 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. | |||||||||||||||||||||||||||||||||||||||
The following table presents activity for the accretable yield on PCI fixed maturity securities for: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Accretable yield, January 1, | $ | 2,431 | $ | 2,357 | ||||||||||||||||||||||||||||||||||||
Investments purchased | 211 | 407 | ||||||||||||||||||||||||||||||||||||||
Accretion recognized in earnings | (217 | ) | (236 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | (47 | ) | (144 | ) | ||||||||||||||||||||||||||||||||||||
Reclassification (to) from nonaccretable difference | (495 | ) | 47 | |||||||||||||||||||||||||||||||||||||
Accretable yield, December 31, | $ | 1,883 | $ | 2,431 | ||||||||||||||||||||||||||||||||||||
Collectively Significant Equity Method Investments | ||||||||||||||||||||||||||||||||||||||||
The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $9.9 billion at December 31, 2014. The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $2.7 billion at December 31, 2014. Except for certain real estate joint ventures, the Company’s investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities. | ||||||||||||||||||||||||||||||||||||||||
As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) from continuing operations for one of the three most recent annual periods: 2013. The Company is providing the following aggregated summarized financial data for such equity method investments, for the most recent annual periods, in order to provide comparative information. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities. | ||||||||||||||||||||||||||||||||||||||||
The aggregated summarized financial data presented below reflects the latest available financial information and is as of, and for, the years ended December 31, 2014, 2013 and 2012. Aggregate total assets of these entities totaled $351.0 billion and $280.7 billion at December 31, 2014 and 2013, respectively. Aggregate total liabilities of these entities totaled $32.1 billion and $23.5 billion at December 31, 2014 and 2013, respectively. Aggregate net income (loss) of these entities totaled $33.7 billion, $25.0 billion and $16.5 billion for the years ended December 31, 2014, 2013 and 2012, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
The Company has invested in certain structured transactions (including consolidated securitization entities (“CSEs”)) that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. | ||||||||||||||||||||||||||||||||||||||||
The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||||
The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at December 31, 2014 and 2013. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Total | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities (1) | $ | 163 | $ | 78 | $ | 159 | $ | 80 | ||||||||||||||||||||||||||||||||
Other invested assets | 59 | — | 82 | 7 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 37 | — | 61 | — | ||||||||||||||||||||||||||||||||||||
CSEs (assets (primarily securities) and liabilities (primarily debt)) (2) | 16 | 15 | 23 | 22 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures (3) | 9 | 15 | 1,181 | 443 | ||||||||||||||||||||||||||||||||||||
Total | $ | 284 | $ | 108 | $ | 1,506 | $ | 552 | ||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company consolidates certain fixed maturity securities purchased in an investment vehicle which was partially funded with affiliated long-term debt. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $2 million for both the years ended December 31, 2014 and 2013 and was $1 million for the year ended December 31, 2012. | |||||||||||||||||||||||||||||||||||||||
-2 | The Company consolidates entities that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of less than $1 million at estimated fair value at both December 31, 2014 and 2013. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $1 million, $3 million and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||
-3 | At December 31, 2013, the Company consolidated an open ended core real estate fund formed in the fourth quarter of 2013 (the “MetLife Core Property Fund”), which represented the majority of the balances at December 31, 2013. As a result of the quarterly reassessment in the first quarter of 2014, the Company no longer consolidated the MetLife Core Property Fund, effective March 31, 2014, based on the terms of the revised partnership agreement. The Company accounts for its retained interest in the real estate fund under the equity method. Assets of the real estate fund are a real estate investment trust which holds primarily traditional core income-producing real estate which has associated liabilities that are primarily non-recourse debt secured by certain real estate assets of the fund. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its investment in the real estate fund of $178 million at carrying value at December 31, 2013. The long-term debt bears interest primarily at fixed rates ranging from 1.39% to 4.45%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was less than $1 million for the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||||||||||||||||||||
The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Carrying | Maximum | Carrying | Maximum | |||||||||||||||||||||||||||||||||||||
Amount | Exposure | Amount | Exposure | |||||||||||||||||||||||||||||||||||||
to Loss (1) | to Loss (1) | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) (2) | $ | 44,302 | $ | 44,302 | $ | 40,910 | $ | 40,910 | ||||||||||||||||||||||||||||||||
U.S. and foreign corporate | 1,919 | 1,919 | 2,251 | 2,251 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 3,722 | 4,833 | 3,168 | 4,273 | ||||||||||||||||||||||||||||||||||||
Other invested assets | 1,683 | 2,003 | 1,498 | 1,852 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 52 | 74 | 31 | 31 | ||||||||||||||||||||||||||||||||||||
Total | $ | 51,678 | $ | 53,131 | $ | 47,858 | $ | 49,317 | ||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $212 million and $257 million at December 31, 2014 and 2013, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. | |||||||||||||||||||||||||||||||||||||||
-2 | For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. | |||||||||||||||||||||||||||||||||||||||
As described in Note 17, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||||||||||||||
The components of net investment income were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 8,260 | $ | 8,279 | $ | 8,295 | ||||||||||||||||||||||||||||||||||
Equity securities | 86 | 78 | 68 | |||||||||||||||||||||||||||||||||||||
Trading and FVO securities - Actively Traded and FVO general account securities (1) | 23 | 43 | 77 | |||||||||||||||||||||||||||||||||||||
Mortgage loans | 2,378 | 2,405 | 2,528 | |||||||||||||||||||||||||||||||||||||
Policy loans | 448 | 440 | 451 | |||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 725 | 699 | 593 | |||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 721 | 633 | 555 | |||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | 26 | 32 | 19 | |||||||||||||||||||||||||||||||||||||
Operating joint ventures | 2 | (4 | ) | (2 | ) | |||||||||||||||||||||||||||||||||||
Other | 61 | 21 | 7 | |||||||||||||||||||||||||||||||||||||
Subtotal | 12,730 | 12,626 | 12,591 | |||||||||||||||||||||||||||||||||||||
Less: Investment expenses | 838 | 844 | 743 | |||||||||||||||||||||||||||||||||||||
Subtotal, net | 11,892 | 11,782 | 11,848 | |||||||||||||||||||||||||||||||||||||
FVO CSEs - interest income: | ||||||||||||||||||||||||||||||||||||||||
Securities | 1 | 3 | 4 | |||||||||||||||||||||||||||||||||||||
Subtotal | 1 | 3 | 4 | |||||||||||||||||||||||||||||||||||||
Net investment income | $ | 11,893 | $ | 11,785 | $ | 11,852 | ||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective years included in net investment income were ($14) million, $4 million and $44 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of CSEs. | ||||||||||||||||||||||||||||||||||||||||
See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses. | ||||||||||||||||||||||||||||||||||||||||
Net Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
Components of Net Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
The components of net investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector and industry: | ||||||||||||||||||||||||||||||||||||||||
U.S. and foreign corporate securities — by industry: | ||||||||||||||||||||||||||||||||||||||||
Consumer | $ | (6 | ) | $ | (12 | ) | $ | (19 | ) | |||||||||||||||||||||||||||||||
Utility | — | (48 | ) | (29 | ) | |||||||||||||||||||||||||||||||||||
Finance | — | (4 | ) | (21 | ) | |||||||||||||||||||||||||||||||||||
Communications | — | (2 | ) | (18 | ) | |||||||||||||||||||||||||||||||||||
Industrial | — | — | (4 | ) | ||||||||||||||||||||||||||||||||||||
Transportation | — | — | (1 | ) | ||||||||||||||||||||||||||||||||||||
Total U.S. and foreign corporate securities | (6 | ) | (66 | ) | (92 | ) | ||||||||||||||||||||||||||||||||||
RMBS | (20 | ) | (62 | ) | (70 | ) | ||||||||||||||||||||||||||||||||||
CMBS | — | — | (28 | ) | ||||||||||||||||||||||||||||||||||||
ABS | — | — | (2 | ) | ||||||||||||||||||||||||||||||||||||
OTTI losses on fixed maturity securities recognized in earnings | (26 | ) | (128 | ) | (192 | ) | ||||||||||||||||||||||||||||||||||
Fixed maturity securities — net gains (losses) on sales and disposals | (99 | ) | 177 | 16 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities | (125 | ) | 49 | (176 | ) | |||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector: | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | (16 | ) | (17 | ) | — | |||||||||||||||||||||||||||||||||||
Common stock | (5 | ) | (2 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||
OTTI losses on equity securities recognized in earnings | (21 | ) | (19 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||
Equity securities — net gains (losses) on sales and disposals | 42 | 6 | 15 | |||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities | 21 | (13 | ) | 8 | ||||||||||||||||||||||||||||||||||||
Trading and FVO securities — FVO general account securities | 1 | 11 | 11 | |||||||||||||||||||||||||||||||||||||
Mortgage loans | (36 | ) | 31 | 84 | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 252 | (15 | ) | (27 | ) | |||||||||||||||||||||||||||||||||||
Other limited partnership interests | (69 | ) | (41 | ) | (35 | ) | ||||||||||||||||||||||||||||||||||
Other investment portfolio gains (losses) | (108 | ) | 5 | (192 | ) | |||||||||||||||||||||||||||||||||||
Subtotal — investment portfolio gains (losses) | (64 | ) | 27 | (327 | ) | |||||||||||||||||||||||||||||||||||
FVO CSEs: | ||||||||||||||||||||||||||||||||||||||||
Securities | — | 2 | — | |||||||||||||||||||||||||||||||||||||
Long-term debt — related to securities | (1 | ) | (2 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||
Non-investment portfolio gains (losses) | 208 | 21 | 4 | |||||||||||||||||||||||||||||||||||||
Subtotal FVO CSEs and non-investment portfolio gains (losses) | 207 | 21 | (3 | ) | ||||||||||||||||||||||||||||||||||||
Total net investment gains (losses) | $ | 143 | $ | 48 | $ | (330 | ) | |||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of CSEs. | ||||||||||||||||||||||||||||||||||||||||
See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. | ||||||||||||||||||||||||||||||||||||||||
Gains (losses) from foreign currency transactions included within net investment gains (losses) were $132 million, less than $1 million and $2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||
Sales or Disposals and Impairments of Fixed Maturity and Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the table below. Investment gains and losses on sales of securities are determined on a specific identification basis. | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 44,906 | $ | 45,538 | $ | 29,472 | $ | 128 | $ | 144 | $ | 126 | ||||||||||||||||||||||||||||
Gross investment gains | $ | 260 | $ | 556 | $ | 327 | $ | 46 | $ | 25 | $ | 23 | ||||||||||||||||||||||||||||
Gross investment losses | (359 | ) | (379 | ) | (311 | ) | (4 | ) | (19 | ) | (8 | ) | ||||||||||||||||||||||||||||
OTTI losses (1) | (26 | ) | (128 | ) | (192 | ) | (21 | ) | (19 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net investment gains (losses) | $ | (125 | ) | $ | 49 | $ | (176 | ) | $ | 21 | $ | (13 | ) | $ | 8 | |||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | OTTI losses recognized in earnings include noncredit-related impairment losses of $0, $13 million and $67 million for the years ended December 31, 2014, 2013 and 2012, respectively, on (i) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position, and (ii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. | |||||||||||||||||||||||||||||||||||||||
Credit Loss Rollforward | ||||||||||||||||||||||||||||||||||||||||
The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in OCI: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 277 | $ | 285 | ||||||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||
Initial impairments — credit loss OTTI recognized on securities not previously impaired | 1 | 4 | ||||||||||||||||||||||||||||||||||||||
Additional impairments — credit loss OTTI recognized on securities previously impaired | 15 | 54 | ||||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (30 | ) | (65 | ) | ||||||||||||||||||||||||||||||||||||
Securities impaired to net present value of expected future cash flows | — | — | ||||||||||||||||||||||||||||||||||||||
Increases in cash flows — accretion of previous credit loss OTTI | — | (1 | ) | |||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 263 | $ | 277 | ||||||||||||||||||||||||||||||||||||
Related Party Investment Transactions | ||||||||||||||||||||||||||||||||||||||||
The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred to affiliates | $ | 97 | $ | 781 | $ | 4 | ||||||||||||||||||||||||||||||||||
Amortized cost of invested assets transferred to affiliates | $ | 89 | $ | 688 | $ | 4 | ||||||||||||||||||||||||||||||||||
Net investment gains (losses) recognized on transfers | $ | 8 | $ | 93 | $ | — | ||||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred from affiliates | $ | 882 | $ | 882 | $ | — | ||||||||||||||||||||||||||||||||||
Prior to the Mergers, certain related party investment transactions were consummated as summarized below. See Note 6 for additional information on the Mergers. | ||||||||||||||||||||||||||||||||||||||||
• | The Company had a loan outstanding to Exeter, an affiliate, totaling $75 million at December 31, 2013, which was included in other invested assets. MetLife USA assumed the loan upon the consummation of the Mergers in November 2014 and, subsequently, the loan matured on December 30, 2014. Net investment income from this loan was $5 million for each of the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||
• | In July 2014, the Company purchased from other affiliates additional affiliated loans (having an unpaid principal balance of $400 million) at estimated fair value of $437 million, which are included in other invested assets and in the table above. The unpaid principal balances on these acquired loans, which bear interest at fixed rates payable semiannually are due as follows: $295 million due July 15, 2021 at 5.64% and $105 million due December 16, 2021 at 5.86%. | |||||||||||||||||||||||||||||||||||||||
• | In 2013, Metropolitan Life Insurance Company transferred invested assets to and from MICC of $751 million and $739 million, respectively, related to the establishment of a custodial account to secure certain policyholder liabilities, which is included in the table above. | |||||||||||||||||||||||||||||||||||||||
In December 2014, American Life Insurance Company, an affiliate, issued a surplus note to the Company, which was included in other invested assets, totaling $100 million. The loan, which bears interest at a fixed rate of 3.17%, payable semiannually, is due on June 30, 2020. | ||||||||||||||||||||||||||||||||||||||||
The Company has affiliated loans outstanding to MetLife, Inc., which are included in other invested assets, totaling $2.0 billion and $1.5 billion at December 31, 2014 and 2013, respectively. The loans, which bear interest at a fixed rate, payable semiannually are due as follows: $500 million at 3.54% due on June 30, 2019, $250 million at 3.57% due on October 1, 2019, $250 million at 7.44% due on September 30, 2016, $150 million at 5.64% due July 15, 2021 and $375 million at 5.86% due December 16, 2021. Net investment income from these affiliated loans, and the $400 million of affiliated loans acquired in July 2014 described above, was $92 million, $90 million and $93 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||
The Company purchased from MetLife Bank, National Association, $1.5 billion and $1.3 billion of fixed maturity securities and mortgage loans, respectively, at estimated fair value, for cash during the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||
The Company provides investment administrative services to certain affiliates. The related investment administrative service charges to these affiliates were $179 million, $172 million and $158 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company also earned additional affiliated net investment income of $4 million for each of the years ended December 31, 2014, 2013 and 2012. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||
Derivatives | 9. Derivatives | |||||||||||||||||||||||||
Accounting for Derivatives | ||||||||||||||||||||||||||
See Note 1 for a description of the Company’s accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives. | ||||||||||||||||||||||||||
Derivative Strategies | ||||||||||||||||||||||||||
The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. | ||||||||||||||||||||||||||
Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. | ||||||||||||||||||||||||||
Interest Rate Derivatives | ||||||||||||||||||||||||||
The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, caps, floors, swaptions, forwards and futures. | ||||||||||||||||||||||||||
Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and non-qualifying hedging relationships. | ||||||||||||||||||||||||||
The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. Treasury, agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps. Structured interest rate swaps are not designated as hedging instruments. | ||||||||||||||||||||||||||
The Company purchases interest rate caps and floors primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in non-qualifying hedging relationships. Swaptions are included in interest rate options. | ||||||||||||||||||||||||||
The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow hedging relationships. | ||||||||||||||||||||||||||
To a lesser extent, the Company uses interest rate futures in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Foreign Currency Exchange Rate Derivatives | ||||||||||||||||||||||||||
The Company uses foreign currency exchange rate derivatives including foreign currency swaps, and foreign currency forwards to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships. | ||||||||||||||||||||||||||
In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Credit Derivatives | ||||||||||||||||||||||||||
The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, repudiation, moratorium, involuntary restructuring or governmental intervention. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. Treasury securities, agency securities or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. | ||||||||||||||||||||||||||
The Company also enters into certain purchased and written credit default swaps held in relation to trading portfolios for the purpose of generating profits on short-term differences in price. These credit default swaps are not designated as hedging instruments. | ||||||||||||||||||||||||||
The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. | ||||||||||||||||||||||||||
Equity Derivatives | ||||||||||||||||||||||||||
The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and total rate of return swaps (“TRRs”). | ||||||||||||||||||||||||||
Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
TRRs are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses TRRs to hedge its equity market guarantees in certain of its insurance products. TRRs can be used as hedges or to synthetically create investments. The Company utilizes TRRs in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Primary Risks Managed by Derivatives | ||||||||||||||||||||||||||
The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: | ||||||||||||||||||||||||||
Primary Underlying Risk Exposure | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Estimated Fair Value | Estimated Fair Value | |||||||||||||||||||||||||
Gross | Assets | Liabilities | Gross | Assets | Liabilities | |||||||||||||||||||||
Notional | Notional | |||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 5,632 | $ | 2,031 | $ | 18 | $ | 5,940 | $ | 1,277 | $ | 68 | |||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 2,709 | 65 | 101 | 2,591 | 252 | 122 | |||||||||||||||||||
Subtotal | 8,341 | 2,096 | 119 | 8,531 | 1,529 | 190 | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 2,191 | 447 | — | 2,584 | 77 | 109 | |||||||||||||||||||
Interest rate forwards | Interest rate | 70 | 18 | — | 205 | 3 | 3 | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 14,895 | 501 | 614 | 10,560 | 374 | 500 | |||||||||||||||||||
Subtotal | 17,156 | 966 | 614 | 13,349 | 454 | 612 | ||||||||||||||||||||
Total qualifying hedges | 25,497 | 3,062 | 733 | 21,880 | 1,983 | 802 | ||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 56,394 | 2,213 | 1,072 | 59,022 | 1,320 | 732 | |||||||||||||||||||
Interest rate floors | Interest rate | 36,141 | 319 | 108 | 38,220 | 323 | 234 | |||||||||||||||||||
Interest rate caps | Interest rate | 41,227 | 134 | 1 | 29,809 | 141 | — | |||||||||||||||||||
Interest rate futures | Interest rate | 70 | — | — | 105 | — | — | |||||||||||||||||||
Interest rate options | Interest rate | 6,399 | 379 | 15 | 4,849 | 120 | 8 | |||||||||||||||||||
Synthetic GICs | Interest rate | 4,298 | — | — | 4,409 | — | — | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 8,774 | 359 | 176 | 7,267 | 79 | 492 | |||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 3,985 | 92 | 80 | 4,261 | 44 | 32 | |||||||||||||||||||
Credit default swaps — purchased | Credit | 857 | 8 | 11 | 1,506 | 7 | 21 | |||||||||||||||||||
Credit default swaps — written | Credit | 7,419 | 130 | 5 | 6,600 | 124 | 1 | |||||||||||||||||||
Equity futures | Equity market | 954 | 10 | — | — | — | — | |||||||||||||||||||
Equity index options | Equity market | 7,698 | 328 | 352 | 1,147 | — | — | |||||||||||||||||||
Equity variance swaps | Equity market | 5,678 | 60 | 146 | — | — | — | |||||||||||||||||||
TRRs | Equity market | 911 | 10 | 33 | — | — | — | |||||||||||||||||||
Total non-designated or non-qualifying derivatives | 180,805 | 4,042 | 1,999 | 157,195 | 2,158 | 1,520 | ||||||||||||||||||||
Total | $ | 206,302 | $ | 7,104 | $ | 2,732 | $ | 179,075 | $ | 4,141 | $ | 2,322 | ||||||||||||||
Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both December 31, 2014 and 2013. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to synthetically create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these non-qualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. | ||||||||||||||||||||||||||
Net Derivative Gains (Losses) | ||||||||||||||||||||||||||
The components of net derivative gains (losses) were as follows: | ||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives and hedging gains (losses) (1) | $ | 1,207 | $ | (1,205 | ) | $ | 77 | |||||||||||||||||||
Embedded derivatives | (170 | ) | 135 | 598 | ||||||||||||||||||||||
Total net derivative gains (losses) | $ | 1,037 | $ | (1,070 | ) | $ | 675 | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. | |||||||||||||||||||||||||
The following table presents earned income on derivatives: | ||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Qualifying hedges: | ||||||||||||||||||||||||||
Net investment income | $ | 162 | $ | 129 | $ | 108 | ||||||||||||||||||||
Interest credited to policyholder account balances | 106 | 148 | 146 | |||||||||||||||||||||||
Non-qualifying hedges: | ||||||||||||||||||||||||||
Net investment income | (4 | ) | (6 | ) | (6 | ) | ||||||||||||||||||||
Net derivative gains (losses) | 484 | 450 | 314 | |||||||||||||||||||||||
Policyholder benefits and claims | 8 | — | — | |||||||||||||||||||||||
Total | $ | 756 | $ | 721 | $ | 562 | ||||||||||||||||||||
Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging | ||||||||||||||||||||||||||
The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments: | ||||||||||||||||||||||||||
Net | Net | Policyholder | ||||||||||||||||||||||||
Derivative | Investment | Benefits and | ||||||||||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | 314 | $ | — | $ | — | ||||||||||||||||||||
Foreign currency exchange rate derivatives | 554 | — | — | |||||||||||||||||||||||
Credit derivatives — purchased | (2 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — written | (1 | ) | — | — | ||||||||||||||||||||||
Equity derivatives | 11 | (10 | ) | (10 | ) | |||||||||||||||||||||
Total | $ | 876 | $ | (10 | ) | $ | (10 | ) | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (1,753 | ) | $ | — | $ | — | |||||||||||||||||||
Foreign currency exchange rate derivatives | (69 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — purchased | (6 | ) | (14 | ) | — | |||||||||||||||||||||
Credit derivatives — written | 100 | 1 | — | |||||||||||||||||||||||
Equity derivatives | — | (22 | ) | — | ||||||||||||||||||||||
Total | $ | (1,728 | ) | $ | (35 | ) | $ | — | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (83 | ) | $ | — | $ | — | |||||||||||||||||||
Foreign currency exchange rate derivatives | (252 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — purchased | (72 | ) | (15 | ) | — | |||||||||||||||||||||
Credit derivatives — written | 105 | — | — | |||||||||||||||||||||||
Equity derivatives | — | (12 | ) | — | ||||||||||||||||||||||
Total | $ | (302 | ) | $ | (27 | ) | $ | — | ||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held in relation to trading portfolios. | |||||||||||||||||||||||||
-2 | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | |||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||
The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. | ||||||||||||||||||||||||||
The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): | ||||||||||||||||||||||||||
Derivatives in Fair Value | Hedged Items in Fair Value | Net Derivative Gains (Losses) Recognized for Derivatives | Net Derivative Gains (Losses) Recognized for Hedged Items | Ineffectiveness Recognized in Net Derivative Gains (Losses) | ||||||||||||||||||||||
Hedging Relationships | Hedging Relationships | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 4 | $ | (1 | ) | $ | 3 | ||||||||||||||||||
Policyholder liabilities (1) | 649 | (635 | ) | 14 | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | 13 | (11 | ) | 2 | |||||||||||||||||||||
Foreign-denominated PABs (2) | (283 | ) | 270 | (13 | ) | |||||||||||||||||||||
Total | $ | 383 | $ | (377 | ) | $ | 6 | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 34 | $ | (33 | ) | $ | 1 | ||||||||||||||||||
Policyholder liabilities (1) | (800 | ) | 807 | 7 | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | 13 | (12 | ) | 1 | |||||||||||||||||||||
Foreign-denominated PABs (2) | (98 | ) | 112 | 14 | ||||||||||||||||||||||
Total | $ | (851 | ) | $ | 874 | $ | 23 | |||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 2 | $ | (3 | ) | $ | (1 | ) | |||||||||||||||||
Policyholder liabilities (1) | (72 | ) | 89 | 17 | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | (1 | ) | 1 | — | |||||||||||||||||||||
Foreign-denominated PABs (2) | 32 | (41 | ) | (9 | ) | |||||||||||||||||||||
Total | $ | (39 | ) | $ | 46 | $ | 7 | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | Fixed rate liabilities reported in PABs or future policy benefits. | |||||||||||||||||||||||||
-2 | Fixed rate or floating rate liabilities. | |||||||||||||||||||||||||
All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||
The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate forwards to hedge forecasted fixed-rate borrowings. | ||||||||||||||||||||||||||
In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). These amounts were ($14) million and $1 million for the years ended December 31, 2014 and 2012, respectively, and were not significant for the year ended December 31, 2013. | ||||||||||||||||||||||||||
At December 31, 2014 and 2013, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed six years and seven years, respectively. | ||||||||||||||||||||||||||
At December 31, 2014 and 2013, the balance in AOCI associated with cash flow hedges was $1.6 billion and $361 million, respectively. | ||||||||||||||||||||||||||
The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of equity: | ||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gains | Amount and Location | Amount and Location | |||||||||||||||||||||||
Hedging Relationships | (Losses)Deferred in | of Gains (Losses) | of Gains (Losses) | |||||||||||||||||||||||
AOCI on Derivatives | Reclassified from | Recognized in Income (Loss) | ||||||||||||||||||||||||
AOCI into Income (Loss) | on Derivatives | |||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||
Net Derivative Gains (Losses) | Net Investment | Net Derivative | ||||||||||||||||||||||||
Income | Gains (Losses) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Interest rate swaps | $ | 587 | $ | 41 | $ | 9 | $ | 3 | ||||||||||||||||||
Interest rate forwards | 34 | (8 | ) | 2 | — | |||||||||||||||||||||
Foreign currency swaps | (15 | ) | (725 | ) | (2 | ) | 2 | |||||||||||||||||||
Credit forwards | — | — | 1 | — | ||||||||||||||||||||||
Total | $ | 606 | $ | (692 | ) | $ | 10 | $ | 5 | |||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (511 | ) | $ | 20 | $ | 8 | $ | (3 | ) | ||||||||||||||||
Interest rate forwards | (43 | ) | 1 | 2 | — | |||||||||||||||||||||
Foreign currency swaps | (120 | ) | (15 | ) | (3 | ) | 2 | |||||||||||||||||||
Credit forwards | (3 | ) | — | 1 | — | |||||||||||||||||||||
Total | $ | (677 | ) | $ | 6 | $ | 8 | $ | (1 | ) | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (55 | ) | $ | 3 | $ | 4 | $ | 1 | |||||||||||||||||
Interest rate forwards | (1 | ) | — | 2 | — | |||||||||||||||||||||
Foreign currency swaps | (187 | ) | (7 | ) | (5 | ) | (5 | ) | ||||||||||||||||||
Credit forwards | — | — | 1 | — | ||||||||||||||||||||||
Total | $ | (243 | ) | $ | (4 | ) | $ | 2 | $ | (4 | ) | |||||||||||||||
All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
At December 31, 2014, $26 million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months. | ||||||||||||||||||||||||||
Credit Derivatives | ||||||||||||||||||||||||||
In connection with synthetically created credit investment transactions and credit default swaps held in relation to the trading portfolio, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $7.4 billion and $6.6 billion at December 31, 2014 and 2013, respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At December 31, 2014 and 2013, the Company would have received $125 million and $123 million, respectively, to terminate all of these contracts. | ||||||||||||||||||||||||||
The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Rating Agency Designation of Referenced | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | ||||||||||||||||||||
Credit Obligations (1) | Fair Value | Amount of Future | Average | Fair Value | Amount of Future | Average | ||||||||||||||||||||
of Credit | Payments under | Years to | of Credit | Payments under | Years to | |||||||||||||||||||||
Default | Credit Default | Maturity (3) | Default | Credit Default | Maturity (3) | |||||||||||||||||||||
Swaps | Swaps (2) | Swaps | Swaps (2) | |||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||
Aaa/Aa/A | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | $ | 5 | $ | 415 | 2.2 | $ | 6 | $ | 395 | 2.6 | ||||||||||||||||
Credit default swaps referencing indices | 10 | 1,566 | 2.7 | 20 | 2,089 | 1.6 | ||||||||||||||||||||
Subtotal | 15 | 1,981 | 2.6 | 26 | 2,484 | 1.7 | ||||||||||||||||||||
Baa | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 15 | 1,002 | 2.8 | 16 | 874 | 3.2 | ||||||||||||||||||||
Credit default swaps referencing indices | 59 | 3,687 | 4.5 | 52 | 2,898 | 4.7 | ||||||||||||||||||||
Subtotal | 74 | 4,689 | 4.1 | 68 | 3,772 | 4.4 | ||||||||||||||||||||
Ba | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | 60 | 3 | — | 5 | 3.8 | ||||||||||||||||||||
Credit default swaps referencing indices | (1 | ) | 100 | 2 | — | — | — | |||||||||||||||||||
Subtotal | (1 | ) | 160 | 2.4 | — | 5 | 3.8 | |||||||||||||||||||
B | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | — | — | — | — | — | ||||||||||||||||||||
Credit default swaps referencing indices | 37 | 589 | 4.9 | 29 | 339 | 4.9 | ||||||||||||||||||||
Subtotal | 37 | 589 | 4.9 | 29 | 339 | 4.9 | ||||||||||||||||||||
Total | $ | 125 | $ | 7,419 | 3.8 | $ | 123 | $ | 6,600 | 3.4 | ||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. | |||||||||||||||||||||||||
-2 | Assumes the value of the referenced credit obligations is zero. | |||||||||||||||||||||||||
-3 | The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. | |||||||||||||||||||||||||
The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amounts of potential future recoveries available to offset the $7.4 billion and $6.6 billion from the table above were $60 million and $70 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
Written credit default swaps held in relation to the trading portfolio amounted to $15 million and $10 million in gross notional amount and $1 million and $0 in fair value at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
Credit Risk on Freestanding Derivatives | ||||||||||||||||||||||||||
The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. | ||||||||||||||||||||||||||
The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. | ||||||||||||||||||||||||||
The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. | ||||||||||||||||||||||||||
See Note 10 for a description of the impact of credit risk on the valuation of derivatives. | ||||||||||||||||||||||||||
The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: | ||||||||||||||||||||||||||
OTC-bilateral (1) | $ | 6,497 | $ | 2,092 | $ | 4,026 | $ | 2,232 | ||||||||||||||||||
OTC-cleared (1) | 740 | 682 | 251 | 117 | ||||||||||||||||||||||
Exchange-traded | 10 | — | — | — | ||||||||||||||||||||||
Total gross estimated fair value of derivatives (1) | 7,247 | 2,774 | 4,277 | 2,349 | ||||||||||||||||||||||
Amounts offset on the consolidated balance sheets | — | — | — | — | ||||||||||||||||||||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1) | 7,247 | 2,774 | 4,277 | 2,349 | ||||||||||||||||||||||
Gross amounts not offset on the consolidated balance sheets: | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: (2) | ||||||||||||||||||||||||||
OTC-bilateral | (1,742 | ) | (1,742 | ) | (1,844 | ) | (1,844 | ) | ||||||||||||||||||
OTC-cleared | (638 | ) | (638 | ) | (114 | ) | (114 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Cash collateral: (3), (4) | ||||||||||||||||||||||||||
OTC-bilateral | (2,470 | ) | (2 | ) | (1,143 | ) | (3 | ) | ||||||||||||||||||
OTC-cleared | (97 | ) | (40 | ) | (128 | ) | (3 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Securities collateral: (5) | ||||||||||||||||||||||||||
OTC-bilateral | (2,161 | ) | (333 | ) | (1,024 | ) | (319 | ) | ||||||||||||||||||
OTC-cleared | — | (3 | ) | — | — | |||||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Net amount after application of master netting agreements and collateral | $ | 139 | $ | 16 | $ | 24 | $ | 66 | ||||||||||||||||||
__________________ | ||||||||||||||||||||||||||
-1 | At December 31, 2014 and 2013, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $143 million and $136 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $42 million and $27 million, respectively. | |||||||||||||||||||||||||
-2 | Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. | |||||||||||||||||||||||||
-3 | Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. In certain instances, cash collateral pledged to the Company as initial margin for OTC-bilateral derivatives is held in separate custodial accounts and is not recorded on the Company’s balance sheet because the account title is in the name of the counterparty (but segregated for the benefit of the Company). The amount of this off-balance sheet collateral was $138 million and $0 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
-4 | The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2014 and 2013, the Company received excess cash collateral of $0 and $47 million, respectively, and provided excess cash collateral of $31 million and $3 million, respectively, which is not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
-5 | Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2014 none of the collateral had been sold or re-pledged . Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2014 and 2013, the Company received excess securities collateral with an estimated fair value of $243 million and $106 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2014 and 2013, the Company provided excess securities collateral with an estimated fair value of $57 million and $25 million, respectively, for its OTC-bilateral derivatives, and $155 million and $106 million, respectively, for its OTC-cleared derivatives, and $17 million and $0 respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty’s derivatives reaches a pre-determined threshold. Certain of these arrangements also include financial strength-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the financial strength ratings of the Company and/or the credit ratings of the counterparty. In addition, certain of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody’s and S&P. If a party’s financial strength or credit ratings were to fall below that specific investment grade financial strength or credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. | ||||||||||||||||||||||||||
The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company’s financial strength rating at the reporting date or if the Company’s financial strength rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. | ||||||||||||||||||||||||||
Estimated Fair Value of | Fair Value of Incremental | |||||||||||||||||||||||||
Collateral Provided | Collateral Provided Upon | |||||||||||||||||||||||||
Estimated | Fixed Maturity | Cash | One Notch | Downgrade in the Company’s | ||||||||||||||||||||||
Fair Value of Derivatives in | Securities | Downgrade in | Financial Strength Rating | |||||||||||||||||||||||
Net Liability | the Company’s | to a Level | ||||||||||||||||||||||||
Position (1) | Financial Strength Rating | that Triggers Full Overnight | ||||||||||||||||||||||||
Collateralization or Termination | ||||||||||||||||||||||||||
of the Derivative Position | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||
Derivatives subject to financial strength-contingent provisions | $ | 334 | $ | 390 | $ | — | $ | — | $ | — | ||||||||||||||||
Derivatives not subject to financial strength-contingent provisions | 4 | — | 2 | — | — | |||||||||||||||||||||
Total | $ | 338 | $ | 390 | $ | 2 | $ | — | $ | — | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Derivatives subject to financial strength-contingent provisions | $ | 354 | $ | 344 | $ | — | $ | — | $ | 5 | ||||||||||||||||
Derivatives not subject to financial strength-contingent provisions | 4 | — | 3 | — | — | |||||||||||||||||||||
Total | $ | 358 | $ | 344 | $ | 3 | $ | — | $ | 5 | ||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | After taking into consideration the existence of netting agreements. | |||||||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||||||||
The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; affiliated assumed reinsurance of guaranteed minimum benefits related to GMWBs, GMABs, and certain GMIBs; funds withheld on ceded reinsurance and affiliated funds withheld on ceded reinsurance; funding agreements with equity or bond indexed crediting rates; and certain debt and equity securities. | ||||||||||||||||||||||||||
The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
Balance Sheet Location | 2014 | 2013 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts: | ||||||||||||||||||||||||||
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | $ | 657 | $ | (62 | ) | ||||||||||||||||||||
Options embedded in debt or equity securities | Investments | (150 | ) | (106 | ) | |||||||||||||||||||||
Net embedded derivatives within asset host contracts | $ | 507 | $ | (168 | ) | |||||||||||||||||||||
Net embedded derivatives within liability host contracts: | ||||||||||||||||||||||||||
Direct guaranteed minimum benefits | PABs | $ | (548 | ) | $ | (868 | ) | |||||||||||||||||||
Assumed guaranteed minimum benefits | PABs | 72 | — | |||||||||||||||||||||||
Funds withheld on ceded reinsurance | Other liabilities | 1,200 | 758 | |||||||||||||||||||||||
Other | PABs | 7 | 4 | |||||||||||||||||||||||
Net embedded derivatives within liability host contracts | $ | 731 | $ | (106 | ) | |||||||||||||||||||||
The following table presents changes in estimated fair value related to embedded derivatives: | ||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net derivative gains (losses) (1), (2) | $ | (170 | ) | $ | 135 | $ | 598 | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $14 million, ($42) million and ($71) million for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($9) million, $125 million and $122 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
-2 | See Note 6 for discussion of affiliated net derivative gains (losses) included in the table above. | |||||||||||||||||||||||||
Related Party Freestanding Derivative Transactions | ||||||||||||||||||||||||||
In November 2014, as part of the settlement of related party reinsurance transactions, the Company acquired derivatives from an affiliate. The estimated fair value of freestanding derivative assets and liabilities acquired were $740 million and $754 million, respectively. See Note 6 for additional information regarding related party reinsurance transactions in connection with the Mergers. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value | 10. Fair Value | |||||||||||||||||||||||||||||||
When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: | ||||||||||||||||||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. | |||||||||||||||||||||||||||||||
Level 2 | Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||||||||||||||||
Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. | ||||||||||||||||||||||||||||||||
Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below. | ||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | |||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 60,420 | $ | 4,937 | $ | 65,357 | ||||||||||||||||||||||||
U.S. Treasury and agency | 21,625 | 17,445 | — | 39,070 | ||||||||||||||||||||||||||||
Foreign corporate | — | 26,227 | 3,591 | 29,818 | ||||||||||||||||||||||||||||
RMBS | — | 24,534 | 3,629 | 28,163 | ||||||||||||||||||||||||||||
ABS | — | 6,734 | 1,492 | 8,226 | ||||||||||||||||||||||||||||
CMBS | — | 7,464 | 449 | 7,913 | ||||||||||||||||||||||||||||
State and political subdivision | — | 6,520 | — | 6,520 | ||||||||||||||||||||||||||||
Foreign government | — | 3,642 | 202 | 3,844 | ||||||||||||||||||||||||||||
Total fixed maturity securities | 21,625 | 152,986 | 14,300 | 188,911 | ||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Common stock | 584 | 716 | 52 | 1,352 | ||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 550 | 163 | 713 | ||||||||||||||||||||||||||||
Total equity securities | 584 | 1,266 | 215 | 2,065 | ||||||||||||||||||||||||||||
Trading and FVO securities: | ||||||||||||||||||||||||||||||||
Actively Traded Securities | 22 | 627 | 5 | 654 | ||||||||||||||||||||||||||||
FVO general account securities | — | 22 | 14 | 36 | ||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 3 | 12 | 15 | ||||||||||||||||||||||||||||
Total trading and FVO securities | 22 | 652 | 31 | 705 | ||||||||||||||||||||||||||||
Short-term investments (1) | 860 | 3,091 | 230 | 4,181 | ||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 308 | 308 | ||||||||||||||||||||||||||||
Derivative assets: (2) | ||||||||||||||||||||||||||||||||
Interest rate | — | 5,524 | 17 | 5,541 | ||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 1,010 | 7 | 1,017 | ||||||||||||||||||||||||||||
Credit | — | 125 | 13 | 138 | ||||||||||||||||||||||||||||
Equity market | 10 | 279 | 119 | 408 | ||||||||||||||||||||||||||||
Total derivative assets | 10 | 6,938 | 156 | 7,104 | ||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 657 | 657 | ||||||||||||||||||||||||||||
Separate account assets (4) | 26,119 | 111,601 | 1,615 | 139,335 | ||||||||||||||||||||||||||||
Total assets | $ | 49,220 | $ | 276,534 | $ | 17,512 | $ | 343,266 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | ||||||||||||||||||||||||||||||||
Interest rate | $ | — | $ | 1,214 | $ | — | $ | 1,214 | ||||||||||||||||||||||||
Foreign currency exchange rate | — | 971 | — | 971 | ||||||||||||||||||||||||||||
Credit | — | 15 | 1 | 16 | ||||||||||||||||||||||||||||
Equity market | — | 382 | 149 | 531 | ||||||||||||||||||||||||||||
Total derivative liabilities | — | 2,582 | 150 | 2,732 | ||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 7 | 724 | 731 | ||||||||||||||||||||||||||||
Long-term debt | — | 82 | 35 | 117 | ||||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | — | 13 | 13 | ||||||||||||||||||||||||||||
Trading liabilities (5) | 215 | 24 | — | 239 | ||||||||||||||||||||||||||||
Total liabilities | $ | 215 | $ | 2,695 | $ | 922 | $ | 3,832 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | |||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 58,960 | $ | 5,269 | $ | 64,229 | ||||||||||||||||||||||||
U.S. Treasury and agency | 15,858 | 14,624 | 62 | 30,544 | ||||||||||||||||||||||||||||
Foreign corporate | — | 25,558 | 3,198 | 28,756 | ||||||||||||||||||||||||||||
RMBS | — | 22,197 | 2,513 | 24,710 | ||||||||||||||||||||||||||||
ABS | — | 5,298 | 2,526 | 7,824 | ||||||||||||||||||||||||||||
CMBS | — | 7,946 | 430 | 8,376 | ||||||||||||||||||||||||||||
State and political subdivision | — | 5,777 | — | 5,777 | ||||||||||||||||||||||||||||
Foreign government | — | 3,256 | 274 | 3,530 | ||||||||||||||||||||||||||||
Total fixed maturity securities | 15,858 | 143,616 | 14,272 | 173,746 | ||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Common stock | 361 | 753 | 50 | 1,164 | ||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 450 | 278 | 728 | ||||||||||||||||||||||||||||
Total equity securities | 361 | 1,203 | 328 | 1,892 | ||||||||||||||||||||||||||||
Trading and FVO securities: | ||||||||||||||||||||||||||||||||
Actively Traded Securities | 2 | 648 | 12 | 662 | ||||||||||||||||||||||||||||
FVO general account securities | — | 24 | 14 | 38 | ||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 23 | — | 23 | ||||||||||||||||||||||||||||
Total trading and FVO securities | 2 | 695 | 26 | 723 | ||||||||||||||||||||||||||||
Short-term investments (1) | 1,387 | 4,224 | 175 | 5,786 | ||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 338 | 338 | ||||||||||||||||||||||||||||
Derivative assets: (2) | ||||||||||||||||||||||||||||||||
Interest rate | — | 3,258 | 3 | 3,261 | ||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 735 | 14 | 749 | ||||||||||||||||||||||||||||
Credit | — | 108 | 23 | 131 | ||||||||||||||||||||||||||||
Equity market | — | — | — | — | ||||||||||||||||||||||||||||
Total derivative assets | — | 4,101 | 40 | 4,141 | ||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | (62 | ) | (62 | ) | ||||||||||||||||||||||||||
Separate account assets (4) | 28,422 | 105,165 | 1,209 | 134,796 | ||||||||||||||||||||||||||||
Total assets | $ | 46,030 | $ | 259,004 | $ | 16,326 | $ | 321,360 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | ||||||||||||||||||||||||||||||||
Interest rate | $ | — | $ | 1,150 | $ | 4 | $ | 1,154 | ||||||||||||||||||||||||
Foreign currency exchange rate | — | 1,146 | — | 1,146 | ||||||||||||||||||||||||||||
Credit | — | 22 | — | 22 | ||||||||||||||||||||||||||||
Equity market | — | — | — | — | ||||||||||||||||||||||||||||
Total derivative liabilities | — | 2,318 | 4 | 2,322 | ||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 4 | (110 | ) | (106 | ) | ||||||||||||||||||||||||||
Long-term debt | — | 79 | 43 | 122 | ||||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | — | 28 | 28 | ||||||||||||||||||||||||||||
Trading liabilities (5) | 260 | 2 | — | 262 | ||||||||||||||||||||||||||||
Total liabilities | $ | 260 | $ | 2,403 | $ | (35 | ) | $ | 2,628 | |||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. | |||||||||||||||||||||||||||||||
-2 | Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. | |||||||||||||||||||||||||||||||
-3 | Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within PABs and other liabilities on the consolidated balance sheets. At December 31, 2014 and 2013, equity securities also included embedded derivatives of ($150) million and ($106) million, respectively. | |||||||||||||||||||||||||||||||
-4 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. | |||||||||||||||||||||||||||||||
-5 | Trading liabilities are presented within other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||||||||||
The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Valuation Controls and Procedures | ||||||||||||||||||||||||||||||||
On behalf of the Company and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committees of Metropolitan Life Insurance Company’s and MetLife, Inc.’s Boards of Directors regarding compliance with fair value accounting standards. | ||||||||||||||||||||||||||||||||
The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 9% of the total estimated fair value of Level 3 fixed maturity securities. | ||||||||||||||||||||||||||||||||
The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used. | ||||||||||||||||||||||||||||||||
Securities, Short-term Investments, Long-term Debt, Long-term Debt of CSEs — FVO, and Trading Liabilities | ||||||||||||||||||||||||||||||||
When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. | ||||||||||||||||||||||||||||||||
When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. | ||||||||||||||||||||||||||||||||
The estimated fair value of FVO securities held by CSEs, long-term debt, long-term debt of CSEs — FVO, and trading liabilities is determined on a basis consistent with the methodologies described herein for securities. | ||||||||||||||||||||||||||||||||
The valuation of most instruments listed below are determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. | ||||||||||||||||||||||||||||||||
Instrument | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate securities | ||||||||||||||||||||||||||||||||
Valuation Techniques: Principally the market and income approaches. | Valuation Techniques: Principally the market approach. | |||||||||||||||||||||||||||||||
Key Inputs: | Key Inputs: | |||||||||||||||||||||||||||||||
• | quoted prices in markets that are not active | • | illiquidity premium | |||||||||||||||||||||||||||||
• | benchmark yields | • | delta spread adjustments to reflect specific credit-related issues | |||||||||||||||||||||||||||||
• | spreads off benchmark yields | • | credit spreads | |||||||||||||||||||||||||||||
• | new issuances | • | quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 | |||||||||||||||||||||||||||||
• | issuer rating | |||||||||||||||||||||||||||||||
• | duration | • | independent non-binding broker quotations | |||||||||||||||||||||||||||||
• | trades of identical or comparable securities | |||||||||||||||||||||||||||||||
• | Privately-placed securities are valued using the additional key inputs: | |||||||||||||||||||||||||||||||
• | market yield curve | |||||||||||||||||||||||||||||||
• | call provisions | |||||||||||||||||||||||||||||||
• | observable prices and spreads for similar publicly traded or privately traded securities that incorporate the credit quality and industry sector of the issuer | |||||||||||||||||||||||||||||||
• | delta spread adjustments to reflect specific credit-related issues | |||||||||||||||||||||||||||||||
U.S. Treasury and agency, State and political subdivision and Foreign government securities | ||||||||||||||||||||||||||||||||
Valuation Techniques: Principally the market approach. | Valuation Techniques: Principally the market approach. | |||||||||||||||||||||||||||||||
Key Inputs: | Key Inputs: | |||||||||||||||||||||||||||||||
• | quoted prices in markets that are not active | • | independent non-binding broker quotations | |||||||||||||||||||||||||||||
• | benchmark U.S. Treasury yield or other yields | • | quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 | |||||||||||||||||||||||||||||
• | the spread off the U.S. Treasury yield curve for the identical security | |||||||||||||||||||||||||||||||
• | issuer ratings and issuer spreads | • | credit spreads | |||||||||||||||||||||||||||||
• | broker-dealer quotes | |||||||||||||||||||||||||||||||
• | comparable securities that are actively traded | |||||||||||||||||||||||||||||||
• | reported trades of similar securities, including those that are actively traded, and those within the same sub-sector or with a similar maturity or credit rating | |||||||||||||||||||||||||||||||
Structured securities comprised of RMBS, ABS and CMBS | ||||||||||||||||||||||||||||||||
Valuation Techniques: Principally the market and income approaches. | Valuation Techniques: Principally the market and income approaches. | |||||||||||||||||||||||||||||||
Key Inputs: | Key Inputs: | |||||||||||||||||||||||||||||||
• | quoted prices in markets that are not active | • | credit spreads | |||||||||||||||||||||||||||||
• | spreads for actively traded securities | • | quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 | |||||||||||||||||||||||||||||
• | spreads off benchmark yields | |||||||||||||||||||||||||||||||
• | expected prepayment speeds and volumes | • | independent non-binding broker quotations | |||||||||||||||||||||||||||||
• | current and forecasted loss severity | |||||||||||||||||||||||||||||||
• | ratings | |||||||||||||||||||||||||||||||
• | weighted average coupon and weighted average maturity | |||||||||||||||||||||||||||||||
• | average delinquency rates | |||||||||||||||||||||||||||||||
• | geographic region | |||||||||||||||||||||||||||||||
• | debt-service coverage ratios | |||||||||||||||||||||||||||||||
• | issuance-specific information, including, but not limited to: | |||||||||||||||||||||||||||||||
• | collateral type | |||||||||||||||||||||||||||||||
• | payment terms of the underlying assets | |||||||||||||||||||||||||||||||
• | payment priority within the tranche | |||||||||||||||||||||||||||||||
• | structure of the security | |||||||||||||||||||||||||||||||
• | deal performance | |||||||||||||||||||||||||||||||
• | vintage of loans | |||||||||||||||||||||||||||||||
Instrument | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||
Common and non-redeemable preferred stock | ||||||||||||||||||||||||||||||||
Valuation Techniques: Principally the market approach. | Valuation Techniques: Principally the market and income approaches. | |||||||||||||||||||||||||||||||
Key Input: | Key Inputs: | |||||||||||||||||||||||||||||||
• | quoted prices in markets that are not considered active | • | credit ratings | |||||||||||||||||||||||||||||
• | issuance structures | |||||||||||||||||||||||||||||||
• | quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 | |||||||||||||||||||||||||||||||
• | independent non-binding broker quotations | |||||||||||||||||||||||||||||||
Trading and FVO securities and Short-term investments | ||||||||||||||||||||||||||||||||
• | Trading and FVO securities and short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and observable inputs used in their valuation are also similar to those described above. | • | Trading and FVO securities and short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and unobservable inputs used in their valuation are also similar to those described above. | |||||||||||||||||||||||||||||
Mortgage Loans — FVO | ||||||||||||||||||||||||||||||||
Residential mortgage loans — FVO | ||||||||||||||||||||||||||||||||
• | N/A | Valuation Techniques: Principally the market approach, including matrix pricing or other similar techniques. | ||||||||||||||||||||||||||||||
Key Inputs: Inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data | ||||||||||||||||||||||||||||||||
Separate Account Assets (1) | ||||||||||||||||||||||||||||||||
Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly | ||||||||||||||||||||||||||||||||
Key Input: | ||||||||||||||||||||||||||||||||
• | quoted prices or reported NAV provided by the fund managers | • | N/A | |||||||||||||||||||||||||||||
Other limited partnership interests | ||||||||||||||||||||||||||||||||
• | N/A | Valuation Techniques: Valued giving consideration to the underlying holdings of the partnerships and by applying a premium or discount, if appropriate. | ||||||||||||||||||||||||||||||
Key Inputs: | ||||||||||||||||||||||||||||||||
• | liquidity | |||||||||||||||||||||||||||||||
• | bid/ask spreads | |||||||||||||||||||||||||||||||
• | the performance record of the fund manager | |||||||||||||||||||||||||||||||
• | other relevant variables that may impact the exit value of the particular partnership interest | |||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments, Other Investments, Long-term Debt of CSEs — FVO, and Trading Liabilities” and “— Derivatives — Freestanding Derivatives Valuation Techniques and Key Inputs.” | |||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.” | ||||||||||||||||||||||||||||||||
The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. | ||||||||||||||||||||||||||||||||
Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. | ||||||||||||||||||||||||||||||||
The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. | ||||||||||||||||||||||||||||||||
Freestanding Derivatives Valuation Techniques and Key Inputs | ||||||||||||||||||||||||||||||||
Level 2 | ||||||||||||||||||||||||||||||||
This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. | ||||||||||||||||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||||||
These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. | ||||||||||||||||||||||||||||||||
Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows: | ||||||||||||||||||||||||||||||||
Instrument | Interest Rate | Foreign Currency | Credit | Equity market | ||||||||||||||||||||||||||||
Exchange Rate | ||||||||||||||||||||||||||||||||
Inputs common to Level 2 and Level 3 by instrument type | • | swap yield curve | • | swap yield curve | • | swap yield curve | • | swap yield curve | ||||||||||||||||||||||||
• | basis curves | • | basis curves | • | credit curves | • | spot equity index levels | |||||||||||||||||||||||||
• | interest rate volatility (2) | • | currency spot rates | • | recovery rates | • | dividend yield curves | |||||||||||||||||||||||||
• | cross currency basis curves | • | equity volatility | |||||||||||||||||||||||||||||
Level 3 | • | swap yield curve (1) | • | swap yield curve (1) | • | swap yield curve (1) | • | dividend yield curves (1) | ||||||||||||||||||||||||
• | basis curves (1) | • | basis curves (1) | • | credit curves (1) | • | equity volatility (1) | |||||||||||||||||||||||||
• | cross currency basis curves (1) | • | credit spreads | • | correlation between model inputs (2) | |||||||||||||||||||||||||||
• | currency correlation | • | repurchase rates | |||||||||||||||||||||||||||||
• | independent non-binding broker quotations | |||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Extrapolation beyond the observable limits of the curve(s). | |||||||||||||||||||||||||||||||
-2 | Option-based only. | |||||||||||||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||||||||||||||
Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and those related to ceded funds withheld on reinsurance. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. | ||||||||||||||||||||||||||||||||
The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within PABs on the consolidated balance sheets. | ||||||||||||||||||||||||||||||||
The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. | ||||||||||||||||||||||||||||||||
Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. | ||||||||||||||||||||||||||||||||
The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife, Inc. | ||||||||||||||||||||||||||||||||
Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. | ||||||||||||||||||||||||||||||||
The Company ceded the risk associated with certain of the GMIBs, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. | ||||||||||||||||||||||||||||||||
The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in “— Investments — Securities, Short-term Investments, Long-term Debt of CSEs — FVO, and Trading Liabilities.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. | ||||||||||||||||||||||||||||||||
The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within PABs with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. | ||||||||||||||||||||||||||||||||
Embedded Derivatives Within Asset and Liability Host Contracts | ||||||||||||||||||||||||||||||||
Level 3 Valuation Techniques and Key Inputs: | ||||||||||||||||||||||||||||||||
Direct and assumed guaranteed minimum benefits | ||||||||||||||||||||||||||||||||
These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. | ||||||||||||||||||||||||||||||||
Reinsurance ceded on certain guaranteed minimum benefits | ||||||||||||||||||||||||||||||||
These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads. | ||||||||||||||||||||||||||||||||
Embedded derivatives within funds withheld related to certain ceded reinsurance | ||||||||||||||||||||||||||||||||
These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and the fair value of assets within the reference portfolio. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. | ||||||||||||||||||||||||||||||||
Transfers between Levels | ||||||||||||||||||||||||||||||||
Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. | ||||||||||||||||||||||||||||||||
Transfers between Levels 1 and 2: | ||||||||||||||||||||||||||||||||
For assets and liabilities measured at estimated fair value and still held at December 31, 2014, there were no transfers between Levels 1 and 2. For assets and liabilities measured at estimated fair value and still held at December 31, 2013, transfers between Levels 1 and 2 were not significant. | ||||||||||||||||||||||||||||||||
Transfers into or out of Level 3: | ||||||||||||||||||||||||||||||||
Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. | ||||||||||||||||||||||||||||||||
Transfers into Level 3 for fixed maturity securities and separate account assets were due primarily to a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade) which have resulted in decreased transparency of valuations and an increased use of independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or credit spreads. | ||||||||||||||||||||||||||||||||
Transfers out of Level 3 for fixed maturity securities, equity securities and separate account assets resulted primarily from increased transparency of both new issuances that, subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to obtain pricing from, or corroborate pricing received from, independent pricing services with observable inputs (such as observable spreads used in pricing securities) or increases in market activity and upgraded credit ratings. | ||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | Impact of | ||||||||||||||||||||||||||||||
Increase in Input | ||||||||||||||||||||||||||||||||
on Estimated | ||||||||||||||||||||||||||||||||
Valuation Techniques | Significant Unobservable Inputs | Range | Weighted | Range | Weighted | Fair Value (2) | ||||||||||||||||||||||||||
Average (1) | Average (1) | |||||||||||||||||||||||||||||||
Fixed maturity securities (3) | ||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | • | Matrix pricing | • | Delta spread adjustments (4) | -40 | - | 240 | 39 | -10 | - | 240 | 38 | Decrease | |||||||||||||||||||
• | Offered quotes (5) | 64 | - | 130 | 96 | 4 | - | 104 | 100 | Increase | ||||||||||||||||||||||
• | Market pricing | • | Quoted prices (5) | — | - | 590 | 126 | — | - | 277 | 122 | Increase | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 98 | - | 126 | 101 | 33 | - | 140 | 98 | Increase | ||||||||||||||||||||
RMBS | • | Market pricing | • | Quoted prices (5) | 22 | - | 120 | 97 | 22 | - | 100 | 98 | Increase (6) | |||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 1 | - | 118 | 93 | 69 | - | 101 | 93 | Increase (6) | ||||||||||||||||||||
ABS | • | Market pricing | • | Quoted prices (5) | 15 | - | 110 | 100 | — | - | 106 | 101 | Increase (6) | |||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 56 | - | 106 | 98 | 56 | - | 106 | 98 | Increase (6) | ||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Interest rate | • | Present value techniques | • | Swap yield (7) | 290 | - | 290 | 401 | - | 450 | Increase (11) | |||||||||||||||||||||
Foreign currency exchange rate | • | Present value techniques | • | Swap yield (7) | — | - | — | 580 | - | 767 | Increase (11) | |||||||||||||||||||||
• | Correlation (8) | 40% | - | 55% | 38% | - | 47% | |||||||||||||||||||||||||
Credit | • | Present value techniques | • | Credit spreads (9) | 98 | - | 100 | 98 | - | 101 | Decrease (9) | |||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (10) | |||||||||||||||||||||||||||||
Equity market | • | Present value techniques or option pricing models | • | Volatility (12) | 15% | - | 27% | — | - | — | Increase (11) | |||||||||||||||||||||
• | Correlation (8) | 70% | - | 70% | — | - | — | |||||||||||||||||||||||||
Embedded derivatives | ||||||||||||||||||||||||||||||||
Direct and ceded guaranteed minimum benefits | • | Option pricing techniques | • | Mortality rates: | ||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.10% | 0% | - | 0.10% | Decrease (13) | |||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.65% | 0.04% | - | 0.65% | Decrease (13) | |||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (13) | |||||||||||||||||||||||||
• | Lapse rates: | |||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (14) | |||||||||||||||||||||||||
Durations 11 - 20 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | |||||||||||||||||||||||||
Durations 21 - 116 | 3% | - | 100% | 3% | - | 100% | Decrease (14) | |||||||||||||||||||||||||
• | Utilization rates | 20% | - | 50% | 20% | - | 50% | Increase (15) | ||||||||||||||||||||||||
• | Withdrawal rates | 0.07% | - | 10% | 0.07% | - | 10% | -16 | ||||||||||||||||||||||||
• | Long-term equity volatilities | 17.40% | - | 25% | 17.40% | - | 25% | Increase (17) | ||||||||||||||||||||||||
• | Nonperformance risk spread | 0.03% | - | 0.46% | 0.03% | - | 0.44% | Decrease (18) | ||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. | |||||||||||||||||||||||||||||||
-2 | The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. | |||||||||||||||||||||||||||||||
-3 | Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. | |||||||||||||||||||||||||||||||
-4 | Range and weighted average are presented in basis points. | |||||||||||||||||||||||||||||||
-5 | Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. | |||||||||||||||||||||||||||||||
-6 | Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. | |||||||||||||||||||||||||||||||
-7 | Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | |||||||||||||||||||||||||||||||
-8 | Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. | |||||||||||||||||||||||||||||||
-9 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | |||||||||||||||||||||||||||||||
-10 | At both December 31, 2014 and 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. | |||||||||||||||||||||||||||||||
-11 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | |||||||||||||||||||||||||||||||
-12 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | |||||||||||||||||||||||||||||||
-13 | Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-14 | Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-15 | The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-16 | The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. | |||||||||||||||||||||||||||||||
-17 | Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-18 | Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The residential mortgage loans — FVO, long-term debt , and long-term debt of CSEs — FVO are valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.” | ||||||||||||||||||||||||||||||||
The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. | U.S. | Foreign | RMBS | ABS | CMBS | Foreign | ||||||||||||||||||||||||||
Corporate | Treasury | Corporate | Government | |||||||||||||||||||||||||||||
and Agency | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 5,269 | $ | 62 | $ | 3,198 | $ | 2,513 | $ | 2,526 | $ | 430 | $ | 274 | ||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | 3 | — | 2 | 42 | 6 | (1 | ) | — | ||||||||||||||||||||||||
Net investment gains (losses) | (6 | ) | — | (4 | ) | 5 | (40 | ) | — | (49 | ) | |||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 274 | — | (56 | ) | 67 | 35 | 1 | 22 | ||||||||||||||||||||||||
Purchases (3) | 1,027 | — | 736 | 1,528 | 1,029 | 183 | — | |||||||||||||||||||||||||
Sales (3) | (925 | ) | — | (229 | ) | (542 | ) | (725 | ) | (39 | ) | (115 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 87 | — | 119 | 45 | 34 | 5 | 70 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (792 | ) | (62 | ) | (175 | ) | (29 | ) | (1,373 | ) | (130 | ) | — | |||||||||||||||||||
Balance at December 31, | $ | 4,937 | $ | — | $ | 3,591 | $ | 3,629 | $ | 1,492 | $ | 449 | $ | 202 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | 2 | $ | 43 | $ | 1 | $ | (1 | ) | $ | 1 | |||||||||||||||||
Net investment gains (losses) | $ | (6 | ) | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities | Trading and FVO Securities | |||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO Securities | Short-term | Residential | Separate | |||||||||||||||||||||||||
Stock | redeemable | Traded | General | Held by CSEs | Investments | Mortgage | Account | |||||||||||||||||||||||||
Preferred | Securities | Account | Loans - FVO | Assets (6) | ||||||||||||||||||||||||||||
Stock | Securities | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 50 | $ | 278 | $ | 12 | $ | 14 | $ | — | $ | 175 | $ | 338 | $ | 1,209 | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | 1 | 20 | — | ||||||||||||||||||||||||
Net investment gains (losses) | 4 | 3 | — | — | — | (2 | ) | — | 102 | |||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
OCI | — | 2 | — | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | 19 | — | 5 | — | — | 230 | 124 | 527 | ||||||||||||||||||||||||
Sales (3) | (21 | ) | (38 | ) | (7 | ) | — | (1 | ) | (156 | ) | (120 | ) | (376 | ) | |||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | 81 | ||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | (54 | ) | (28 | ) | ||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | 13 | — | — | 144 | ||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | (82 | ) | (5 | ) | — | — | (18 | ) | — | (44 | ) | ||||||||||||||||||||
Balance at December 31, | $ | 52 | $ | 163 | $ | 5 | $ | 14 | $ | 12 | $ | 230 | $ | 308 | $ | 1,615 | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | — | $ | — | 20 | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | (2 | ) | $ | (3 | ) | $ | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives (7) | ||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Long-term | Long-term | ||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Debt | Debt of | |||||||||||||||||||||||||||
Exchange | Derivatives (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | (1 | ) | $ | 14 | $ | 23 | $ | — | $ | 48 | $ | (43 | ) | $ | (28 | ) | |||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||||||||
Net derivative gains (losses) | — | (6 | ) | (7 | ) | 14 | (144 | ) | — | — | ||||||||||||||||||||||
OCI | 40 | — | — | — | — | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | 111 | — | — | — | |||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (4 | ) | (155 | ) | — | (30 | ) | — | ||||||||||||||||||||||
Settlements (3) | (22 | ) | (1 | ) | — | — | 29 | 20 | 16 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | 18 | — | |||||||||||||||||||||||||
Balance at December 31, | $ | 17 | $ | 7 | $ | 12 | $ | (30 | ) | $ | (67 | ) | $ | (35 | ) | $ | (13 | ) | ||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | (6 | ) | $ | — | $ | 14 | $ | (115 | ) | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. | U.S. | Foreign | RMBS | ABS | CMBS | Foreign | ||||||||||||||||||||||||||
Corporate | Treasury | Corporate | Government | |||||||||||||||||||||||||||||
and Agency | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 5,460 | $ | 71 | $ | 3,054 | $ | 1,702 | $ | 1,923 | $ | 402 | $ | 282 | ||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | 2 | — | 1 | 30 | — | (1 | ) | 4 | ||||||||||||||||||||||||
Net investment gains (losses) | (37 | ) | — | (22 | ) | (2 | ) | 4 | — | 2 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | (36 | ) | (3 | ) | 3 | 140 | (27 | ) | 2 | (45 | ) | |||||||||||||||||||||
Purchases (3) | 1,188 | — | 842 | 1,001 | 1,133 | 221 | 69 | |||||||||||||||||||||||||
Sales (3) | (862 | ) | (6 | ) | (646 | ) | (328 | ) | (429 | ) | (66 | ) | (37 | ) | ||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 717 | — | 250 | 41 | 1 | 74 | 1 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (1,163 | ) | — | (284 | ) | (71 | ) | (79 | ) | (202 | ) | (2 | ) | |||||||||||||||||||
Balance at December 31, | $ | 5,269 | $ | 62 | $ | 3,198 | $ | 2,513 | $ | 2,526 | $ | 430 | $ | 274 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | 1 | $ | — | $ | — | $ | 35 | $ | — | $ | (1 | ) | $ | 4 | |||||||||||||||||
Net investment gains (losses) | $ | (40 | ) | $ | — | $ | — | $ | (3 | ) | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities | Trading and FVO Securities | |||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO Securities | Short-term | Residential | Separate | |||||||||||||||||||||||||
Stock | redeemable | Traded | General | Held by CSEs | Investments | Mortgage | Account | |||||||||||||||||||||||||
Preferred | Securities | Account | Loans - FVO | Assets (6) | ||||||||||||||||||||||||||||
Stock | Securities | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 60 | $ | 281 | $ | 6 | $ | 26 | $ | — | $ | 252 | $ | — | $ | 940 | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | 5 | — | — | 1 | — | ||||||||||||||||||||||||
Net investment gains (losses) | 20 | (30 | ) | — | 6 | — | (23 | ) | — | 42 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
OCI | (5 | ) | 84 | — | — | — | 19 | — | — | |||||||||||||||||||||||
Purchases (3) | 5 | 17 | 9 | — | — | 174 | 339 | 185 | ||||||||||||||||||||||||
Sales (3) | (31 | ) | (74 | ) | — | (23 | ) | — | (247 | ) | (2 | ) | (204 | ) | ||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | 72 | ||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Transfers into Level 3 (4) | 1 | — | — | — | — | — | — | 236 | ||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | (3 | ) | — | — | — | — | (62 | ) | ||||||||||||||||||||||
Balance at December 31, | $ | 50 | $ | 278 | $ | 12 | $ | 14 | $ | — | $ | 175 | $ | 338 | $ | 1,209 | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||
Net investment gains (losses) | $ | — | $ | (17 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives (7) | ||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Long-term | Long-term | ||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Debt | Debt of | |||||||||||||||||||||||||||
Exchange | Derivatives (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 58 | $ | 37 | $ | 33 | $ | — | $ | (109 | ) | $ | — | $ | (44 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | (2 | ) | ||||||||||||||||||||||||
Net derivative gains (losses) | (3 | ) | (24 | ) | (8 | ) | — | 102 | — | — | ||||||||||||||||||||||
OCI | (44 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (1 | ) | — | — | (43 | ) | — | |||||||||||||||||||||||
Settlements (3) | (12 | ) | 1 | (1 | ) | — | 55 | — | 18 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balance at December 31, | $ | (1 | ) | $ | 14 | $ | 23 | $ | — | $ | 48 | $ | (43 | ) | $ | (28 | ) | |||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | (24 | ) | $ | (5 | ) | $ | — | $ | 115 | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. | U.S. | Foreign | RMBS | ABS | CMBS | Foreign | ||||||||||||||||||||||||||
Corporate | Treasury | Corporate | Government | |||||||||||||||||||||||||||||
and Agency | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 4,919 | $ | 25 | $ | 2,258 | $ | 691 | $ | 1,146 | $ | 219 | $ | 291 | ||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | 7 | — | 6 | 27 | 1 | — | 5 | |||||||||||||||||||||||||
Net investment gains (losses) | (2 | ) | — | (52 | ) | (5 | ) | (1 | ) | (7 | ) | (5 | ) | |||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 173 | — | 142 | 220 | (3 | ) | (3 | ) | 19 | |||||||||||||||||||||||
Purchases (3) | 1,282 | 47 | 1,213 | 892 | 953 | 268 | 2 | |||||||||||||||||||||||||
Sales (3) | (848 | ) | (1 | ) | (489 | ) | (242 | ) | (157 | ) | (167 | ) | (55 | ) | ||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 559 | — | 99 | 131 | 4 | 104 | 25 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (630 | ) | — | (123 | ) | (12 | ) | (20 | ) | (12 | ) | — | ||||||||||||||||||||
Balance at December 31, | $ | 5,460 | $ | 71 | $ | 3,054 | $ | 1,702 | $ | 1,923 | $ | 402 | $ | 282 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | 4 | $ | — | $ | 5 | $ | 27 | $ | 1 | $ | — | $ | 5 | ||||||||||||||||||
Net investment gains (losses) | $ | (3 | ) | $ | — | $ | (13 | ) | $ | (2 | ) | $ | — | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities | Trading and FVO Securities | |||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO Securities | Short-term | Residential | Separate | |||||||||||||||||||||||||
Stock | redeemable | Traded | General | Held by CSEs | Investments | Mortgage | Account | |||||||||||||||||||||||||
Preferred | Securities | Account | Loans - FVO | Assets (6) | ||||||||||||||||||||||||||||
Stock | Securities | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 104 | $ | 293 | $ | — | $ | 14 | $ | — | $ | 134 | $ | — | $ | 1,082 | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | 12 | — | — | — | — | ||||||||||||||||||||||||
Net investment gains (losses) | 7 | (1 | ) | — | — | — | — | — | 84 | |||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
OCI | (7 | ) | 16 | — | — | — | (19 | ) | — | — | ||||||||||||||||||||||
Purchases (3) | 10 | 5 | 6 | — | — | 246 | — | 171 | ||||||||||||||||||||||||
Sales (3) | (24 | ) | (32 | ) | — | — | — | (106 | ) | — | (379 | ) | ||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | 2 | ||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||
Transfers into Level 3 (4) | 1 | — | — | — | — | 5 | — | 24 | ||||||||||||||||||||||||
Transfers out of Level 3 (4) | (31 | ) | — | — | — | — | (8 | ) | — | (43 | ) | |||||||||||||||||||||
Balance at December 31, | $ | 60 | $ | 281 | $ | 6 | $ | 26 | $ | — | $ | 252 | $ | — | $ | 940 | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net investment gains (losses) | $ | (4 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives (7) | ||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Long-term | Long-term | ||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Debt | Debt of | |||||||||||||||||||||||||||
Exchange | Derivatives (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 67 | $ | 56 | $ | 1 | $ | — | $ | (790 | ) | $ | — | $ | (116 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | (7 | ) | ||||||||||||||||||||||||
Net derivative gains (losses) | 17 | (19 | ) | 38 | — | 629 | — | — | ||||||||||||||||||||||||
OCI | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (3 | ) | — | — | — | — | ||||||||||||||||||||||||
Settlements (3) | (25 | ) | — | (3 | ) | — | 52 | — | 79 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balance at December 31, | $ | 58 | $ | 37 | $ | 33 | $ | — | $ | (109 | ) | $ | — | $ | (44 | ) | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (7 | ) | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | (19 | ) | $ | 36 | $ | — | $ | 636 | $ | — | $ | — | |||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of mortgage loans - FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). | |||||||||||||||||||||||||||||||
-2 | Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. | |||||||||||||||||||||||||||||||
-3 | Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. | |||||||||||||||||||||||||||||||
-4 | Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. | |||||||||||||||||||||||||||||||
-5 | Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. | |||||||||||||||||||||||||||||||
-6 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses). | |||||||||||||||||||||||||||||||
-7 | Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. | |||||||||||||||||||||||||||||||
-8 | Embedded derivative assets and liabilities are presented net for purposes of the rollforward. | |||||||||||||||||||||||||||||||
Fair Value Option | ||||||||||||||||||||||||||||||||
The following table presents information for residential mortgage loans, which are accounted for under the FVO, and were initially measured at fair value. | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 436 | $ | 508 | ||||||||||||||||||||||||||||
Difference between estimated fair value and unpaid principal balance | (128 | ) | (170 | ) | ||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 308 | $ | 338 | ||||||||||||||||||||||||||||
Loans in non-accrual status | $ | 125 | $ | — | ||||||||||||||||||||||||||||
The following table presents information for long-term debt, which is accounted for under the FVO, and was initially measured at fair value. | ||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt of CSEs | |||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Contractual principal balance | $ | 115 | $ | 123 | $ | 26 | $ | 42 | ||||||||||||||||||||||||
Difference between estimated fair value and contractual principal balance | 2 | (1 | ) | (13 | ) | (14 | ) | |||||||||||||||||||||||||
Carrying value at estimated fair value (1) | $ | 117 | $ | 122 | $ | 13 | $ | 28 | ||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
-1 | Changes in estimated fair value are recognized in net investment gains (losses). Interest expense is recognized in other expenses. | |||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). | ||||||||||||||||||||||||||||||||
At December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Carrying Value After Measurement | Gains (Losses) | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Mortgage loans, net (1) | $ | 94 | $ | 175 | $ | 361 | $ | 2 | $ | 24 | $ | (16 | ) | |||||||||||||||||||
Other limited partnership interests (2) | $ | 109 | $ | 71 | $ | 48 | $ | (70 | ) | $ | (40 | ) | $ | (30 | ) | |||||||||||||||||
Goodwill (3) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (10 | ) | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. | |||||||||||||||||||||||||||||||
-2 | For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both December 31, 2014 and 2013 were not significant. | |||||||||||||||||||||||||||||||
-3 | As discussed in Note 11, in 2012, the Company recorded an impairment of goodwill associated with the Retail Annuities reporting unit. This impairment has been categorized as Level 3 due to the significant unobservable inputs used in the determination of the estimated fair value. | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments Carried at Other Than Fair Value | ||||||||||||||||||||||||||||||||
The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure. | ||||||||||||||||||||||||||||||||
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: | ||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Value | Estimated | |||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 48,751 | $ | — | $ | — | $ | 50,992 | $ | 50,992 | ||||||||||||||||||||||
Policy loans | $ | 8,491 | $ | — | $ | 796 | $ | 9,614 | $ | 10,410 | ||||||||||||||||||||||
Real estate joint ventures | $ | 30 | $ | — | $ | — | $ | 54 | $ | 54 | ||||||||||||||||||||||
Other limited partnership interests | $ | 635 | $ | — | $ | — | $ | 819 | $ | 819 | ||||||||||||||||||||||
Other invested assets | $ | 2,385 | $ | — | $ | 2,270 | $ | 220 | $ | 2,490 | ||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 13,845 | $ | — | $ | 94 | $ | 14,607 | $ | 14,701 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
PABs | $ | 73,225 | $ | — | $ | — | $ | 75,481 | $ | 75,481 | ||||||||||||||||||||||
Long-term debt | $ | 1,897 | $ | — | $ | 2,029 | $ | 268 | $ | 2,297 | ||||||||||||||||||||||
Other liabilities | $ | 20,139 | $ | — | $ | 609 | $ | 20,133 | $ | 20,742 | ||||||||||||||||||||||
Separate account liabilities | $ | 60,840 | $ | — | $ | 60,840 | $ | — | $ | 60,840 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Value | Estimated | |||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 45,686 | $ | — | $ | — | $ | 47,369 | $ | 47,369 | ||||||||||||||||||||||
Policy loans | $ | 8,421 | $ | — | $ | 786 | $ | 8,767 | $ | 9,553 | ||||||||||||||||||||||
Real estate joint ventures | $ | 47 | $ | — | $ | — | $ | 70 | $ | 70 | ||||||||||||||||||||||
Other limited partnership interests | $ | 865 | $ | — | $ | — | $ | 1,013 | $ | 1,013 | ||||||||||||||||||||||
Other invested assets | $ | 2,017 | $ | 87 | $ | 1,752 | $ | 176 | $ | 2,015 | ||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 14,210 | $ | — | $ | 15 | $ | 14,906 | $ | 14,921 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
PABs | $ | 70,205 | $ | — | $ | — | $ | 72,236 | $ | 72,236 | ||||||||||||||||||||||
Long-term debt | $ | 2,655 | $ | — | $ | 2,956 | $ | — | $ | 2,956 | ||||||||||||||||||||||
Other liabilities | $ | 19,601 | $ | — | $ | 310 | $ | 19,787 | $ | 20,097 | ||||||||||||||||||||||
Separate account liabilities | $ | 57,935 | $ | — | $ | 57,935 | $ | — | $ | 57,935 | ||||||||||||||||||||||
The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: | ||||||||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||||||||
The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans. | ||||||||||||||||||||||||||||||||
Policy Loans | ||||||||||||||||||||||||||||||||
Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates. | ||||||||||||||||||||||||||||||||
Real Estate Joint Ventures and Other Limited Partnership Interests | ||||||||||||||||||||||||||||||||
The estimated fair values of these cost method investments are generally based on the Company’s share of the NAV as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments. | ||||||||||||||||||||||||||||||||
Other Invested Assets | ||||||||||||||||||||||||||||||||
These other invested assets are principally comprised of loans to affiliates. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities. | ||||||||||||||||||||||||||||||||
Premiums, Reinsurance and Other Receivables | ||||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled. | ||||||||||||||||||||||||||||||||
Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty. | ||||||||||||||||||||||||||||||||
The amounts on deposit for derivative settlements, classified within Level 2, essentially represent the equivalent of demand deposit balances and amounts due for securities sold are generally received over short periods such that the estimated fair value approximates carrying value. | ||||||||||||||||||||||||||||||||
PABs | ||||||||||||||||||||||||||||||||
These PABs include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.” | ||||||||||||||||||||||||||||||||
The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability. | ||||||||||||||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||||||||||||||
The estimated fair value of long-term debt is principally determined using market standard valuation methodologies. Capital leases, which are not required to be disclosed at estimated fair value, and debt carried at fair value are excluded from the preceding tables. | ||||||||||||||||||||||||||||||||
Valuations of instruments classified as Level 2 are based primarily on quoted prices in markets that are not active or using matrix pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues. | ||||||||||||||||||||||||||||||||
Valuations of instruments classified as Level 3 are based primarily on discounted cash flow methodologies that utilize unobservable discount rates that can vary significantly based upon the specific terms of each individual arrangement. | ||||||||||||||||||||||||||||||||
Other Liabilities | ||||||||||||||||||||||||||||||||
Other liabilities consist primarily of interest payable, amounts due for securities purchased but not yet settled, funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements, and amounts payable under certain assumed reinsurance agreements, which are recorded using the deposit method of accounting. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values, with the exception of certain deposit type reinsurance payables. For such payables, the estimated fair value is determined as the present value of expected future cash flows, which are discounted using an interest rate determined to reflect the appropriate credit standing of the assuming counterparty. | ||||||||||||||||||||||||||||||||
Separate Account Liabilities | ||||||||||||||||||||||||||||||||
Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts. | ||||||||||||||||||||||||||||||||
Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance, funding agreements related to group life contracts and certain contracts that provide for benefit funding. | ||||||||||||||||||||||||||||||||
Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognized at estimated fair value as described in the section “— Recurring Fair Value Measurements,” the value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill | 11. Goodwill | |||||||||||||||||||
Goodwill, which is included in other assets, is the excess of cost over the estimated fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. The Company tests goodwill for impairment by either performing a qualitative assessment or a two-step quantitative test. The qualitative assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect not to perform the qualitative assessment for some or all of its reporting units and perform a two-step quantitative impairment test. In performing the two-step quantitative impairment test, the Company may use a market multiple valuation approach and a discounted cash flow valuation approach. For reporting units which are particularly sensitive to market assumptions, the Company may use additional valuation methodologies to estimate the reporting units’ fair values. | ||||||||||||||||||||
The market multiple valuation approach utilizes market multiples of companies with similar businesses and the projected operating earnings of the reporting unit. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that the Company believes is appropriate for the respective reporting unit. | ||||||||||||||||||||
The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of the Company’s reporting units could result in goodwill impairments in future periods which could materially adversely affect the Company’s results of operations or financial position. | ||||||||||||||||||||
For the 2014 annual goodwill impairment tests, the Company utilized the qualitative assessment for all of its reporting units and determined it was not more than likely that the fair value of any of the reporting units was less than its carrying amount, and, therefore no further testing was needed for these reporting units. | ||||||||||||||||||||
As discussed in Note 2, effective January 1, 2015, the Company implemented certain segment reporting changes, including revising its capital allocation methodology, which were approved by the chief operating decision maker of MetLife, Inc. in the fourth quarter of 2014. As a result, goodwill was re-tested for impairment during the fourth quarter of 2014 using estimated revised carrying amounts of the reporting units. The Company concluded that the fair values of all reporting units were in excess of their carrying value and, therefore, goodwill was not impaired. | ||||||||||||||||||||
Information regarding goodwill by segment, as well as Corporate & Other, was as follows: | ||||||||||||||||||||
Retail | Group, | Corporate | Corporate | Total | ||||||||||||||||
Voluntary & | Benefit | & Other | ||||||||||||||||||
Worksite | Funding | |||||||||||||||||||
Benefits | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at January 1, 2012 | ||||||||||||||||||||
Goodwill | $ | 37 | $ | 68 | $ | 2 | $ | 4 | $ | 111 | ||||||||||
Accumulated impairment | — | — | — | — | — | |||||||||||||||
Total goodwill, net | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Impairments (1) | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Balance at December 31, 2012 | ||||||||||||||||||||
Goodwill | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Accumulated impairment | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Total goodwill, net | 27 | 68 | 2 | 4 | 101 | |||||||||||||||
Balance at December 31, 2013 | ||||||||||||||||||||
Goodwill | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Accumulated impairment | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Total goodwill, net | 27 | 68 | 2 | 4 | 101 | |||||||||||||||
Balance at December 31, 2014 | ||||||||||||||||||||
Goodwill | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Accumulated impairment | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Total goodwill, net | $ | 27 | $ | 68 | $ | 2 | $ | 4 | $ | 101 | ||||||||||
______________ | ||||||||||||||||||||
-1 | For the year ended December 31, 2012, a non-cash charge of $10 million, which had no impact on income taxes, was recorded in other expenses for the impairment of the entire goodwill balance for the Retail Annuities reporting unit. |
Longterm_and_Shortterm_Debt
Long-term and Short-term Debt | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||
Long-term and Short-term Debt | 12. Long-term and Short-term Debt | ||||||||||||||||||
Long-term and short-term debt outstanding was as follows: | |||||||||||||||||||
Interest Rates (1) | Maturity | December 31, | |||||||||||||||||
Range | Weighted | 2014 | 2013 | ||||||||||||||||
Average | |||||||||||||||||||
(In millions) | |||||||||||||||||||
Surplus notes - affiliated | 3.00% - 7.38% | 6.49% | 2015 - 2037 | $ | 883 | $ | 1,100 | ||||||||||||
Surplus notes | 7.63% - 7.88% | 7.83% | 2015 - 2025 | 701 | 701 | ||||||||||||||
Mortgage loans - affiliated | 2.11% - 7.26% | 5.21% | 2015 - 2020 | 242 | 364 | ||||||||||||||
Senior notes - affiliated (2) | 0.92% - 2.75% | 1.97% | 2021 - 2022 | 78 | 79 | ||||||||||||||
Other notes (3) | 1.34% - 8.00% | 3.34% | 2015 - 2027 | 110 | 533 | ||||||||||||||
Capital lease obligations | — | 23 | |||||||||||||||||
Total long-term debt (4) | 2,014 | 2,800 | |||||||||||||||||
Total short-term debt | 100 | 175 | |||||||||||||||||
Total | $ | 2,114 | $ | 2,975 | |||||||||||||||
______________ | |||||||||||||||||||
-1 | Range of interest rates and weighted average interest rates are for the year ended December 31, 2014. | ||||||||||||||||||
-2 | During 2012, a consolidated VIE issued $80 million of long-term debt to an affiliate. See Note 8. | ||||||||||||||||||
-3 | At December 31, 2013, the Company consolidated the MetLife Core Property Fund. During 2013, this consolidated VIE issued $373 million of long-term debt. The Company no longer consolidated the fund effective March 31, 2014. See Note 8. | ||||||||||||||||||
-4 | Excludes $13 million and $28 million of long-term debt relating to CSEs at December 31, 2014 and 2013, respectively. See Note 8. | ||||||||||||||||||
The aggregate maturities of long-term debt at December 31, 2014 for the next five years and thereafter are $521 million in 2015, $3 million in 2016, $3 million in 2017, $7 million in 2018, $33 million in 2019 and $1.4 billion thereafter. | |||||||||||||||||||
Capital lease obligations and mortgage loans are collateralized and rank highest in priority, followed by unsecured senior debt which consists of senior notes and other notes. Payments of interest and principal on the Company’s surplus notes are subordinate to all other obligations. Payments of interest and principal on surplus notes may be made only with the prior approval of the insurance department of the state of domicile. | |||||||||||||||||||
Certain of the Company’s debt instruments, as well as its credit and committed facilities, contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all such covenants at December 31, 2014. | |||||||||||||||||||
Debt Repayments | |||||||||||||||||||
In November 2014, a wholly-owned real estate subsidiary of the Company repaid in cash $60 million of its 7.01% mortgage loans issued to MetLife USA due in January 2020. It also repaid in cash $60 million of its 4.67% mortgage loans issued to MetLife USA due in January 2017. | |||||||||||||||||||
In September 2014, the Company repaid in cash $217 million of surplus notes issued to MetLife Mexico S.A., an affiliate. The redemption was approved by the Superintendent. | |||||||||||||||||||
Short-term Debt | |||||||||||||||||||
Short-term debt with maturities of one year or less was as follows: | |||||||||||||||||||
December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Commercial paper | $ | 100 | $ | 175 | |||||||||||||||
Average daily balance | $ | 109 | $ | 103 | |||||||||||||||
Average days outstanding | 69 days | 55 days | |||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the weighted average interest rate on short-term debt was 0.10%, 0.12% and 0.17%, respectively. | |||||||||||||||||||
Interest Expense | |||||||||||||||||||
Interest expense related to long-term and short-term debt included in other expenses was $150 million, $150 million and $148 million for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts include $88 million, $91 million and $89 million of interest expense related to affiliated debt for the years ended December 31, 2014, 2013 and 2012, respectively. Such amounts do not include interest expense on long-term debt related to CSEs. See Note 8. | |||||||||||||||||||
Credit and Committed Facilities | |||||||||||||||||||
At December 31, 2014, MetLife Funding, Inc. (“MetLife Funding”) and MetLife, Inc. maintained a $4.0 billion unsecured credit facility and a committed facility aggregating $490 million. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements. | |||||||||||||||||||
Credit Facilities | |||||||||||||||||||
Unsecured credit facilities are used for general corporate purposes, to support the borrowers’ commercial paper program and for the issuance of letters of credit. Total fees expensed associated with these credit facilities were $4 million, $3 million and $3 million for the years ended December 31, 2014, 2013 and 2012, respectively, and was included in other expenses. | |||||||||||||||||||
Information on the credit facility at December 31, 2014 was as follows: | |||||||||||||||||||
Borrower(s) | Expiration | Maximum Capacity | Letters of | Drawdowns | Unused Commitments | ||||||||||||||
Credit | |||||||||||||||||||
Issued (1) | |||||||||||||||||||
(In millions) | |||||||||||||||||||
MetLife, Inc. and MetLife Funding, Inc. | May 2019 (2) | $ | 4,000 | $ | 684 | $ | — | $ | 3,316 | ||||||||||
______________ | |||||||||||||||||||
-1 | MetLife, Inc. and MetLife Funding, a wholly owned subsidiary of Metropolitan Life Insurance Company, are severally liable for their respective obligations under such unsecured credit facility. MetLife Funding is not an applicant under letters of credit outstanding as of December 31, 2014 and is not responsible for any reimbursement obligations under such letters of credit. | ||||||||||||||||||
-2 | In May 2014, MetLife, Inc. and MetLife Funding entered into a $4.0 billion five-year unsecured credit agreement, which amended and restated both the five-year $3.0 billion and the five-year $1.0 billion unsecured credit agreements in their entireties into a single agreement (the “2014 Five-Year Credit Agreement”). The credit facility made available by the 2014 Five-Year Credit Agreement may be used for general corporate purposes (including in the case of loans, to back up commercial paper and, in the case of letters of credit, to support variable annuity policy and reinsurance reserve requirements). All borrowings under the 2014 Five-Year Credit Agreement must be repaid by May 30, 2019, except that letters of credit outstanding on that date may remain outstanding until no later than May 30, 2020. The Company incurred costs of $3 million related to the 2014 Five-Year Credit Agreement, which were capitalized and included in other assets. These costs are being amortized over the remaining term of the 2014 Five-Year Credit Agreement. | ||||||||||||||||||
Committed Facility | |||||||||||||||||||
The committed facility is used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees expensed associated with this committed facility were $4 million, $3 million and $3 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in other expenses. Information on the committed facility at December 31, 2014 was as follows: | |||||||||||||||||||
Account Party/Borrower(s) | Expiration | Maximum Capacity | Letters of | Drawdowns | Unused | ||||||||||||||
Credit | Commitments | ||||||||||||||||||
Issued (1) | |||||||||||||||||||
(In millions) | |||||||||||||||||||
MetLife, Inc. & Missouri Reinsurance, Inc. | June 2016 (2) | $ | 490 | $ | 490 | $ | — | $ | — | ||||||||||
______________ | |||||||||||||||||||
-1 | Missouri Reinsurance, Inc., a subsidiary of Metropolitan Life Insurance Company, had outstanding $490 million in letters of credit at December 31, 2014. | ||||||||||||||||||
-2 | Commencing in December 2015 and extending through March 2016, the capacity will grade down from $490 million to $200 million. |
Equity
Equity | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Equity | 13. Equity | |||||||||||||||||||
Stock-Based Compensation Plans | ||||||||||||||||||||
Overview | ||||||||||||||||||||
In accordance with a service agreement with an affiliate, the Company was allocated a proportionate share of stock-based compensation expenses. The stock-based compensation expenses recognized by the Company are related to awards under MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”), payable in shares of MetLife, Inc. common stock (“Shares”), or options to purchase MetLife, Inc. common stock. The Company does not issue any awards payable in its common stock or options to purchase its common stock. | ||||||||||||||||||||
Description of Plan — General Terms | ||||||||||||||||||||
Under the 2005 Stock Plan, awards granted to employees and agents may be in the form of Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, Performance Shares or Performance Share Units, Cash-Based Awards and Stock-Based Awards (each as defined in the 2005 Stock Plan with reference to Shares). | ||||||||||||||||||||
Compensation expense related to awards under the 2005 Stock Plan is recognized based on the number of awards expected to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless a material deviation from the assumed forfeiture rate is observed during the term in which the awards are expensed, any adjustment necessary to reflect differences in actual experience is recognized in the period the award becomes payable or exercisable. | ||||||||||||||||||||
Compensation expense related to awards under the 2005 Stock Plan is principally related to the issuance of Stock Options, Performance Shares and Restricted Stock Units. The majority of the awards granted by MetLife, Inc. each year under the 2005 Stock Plan are made in the first quarter of each year. | ||||||||||||||||||||
The expense related to stock-based compensation included in other expenses was $100 million, $122 million and $127 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Statutory Equity and Income | ||||||||||||||||||||
Each U.S. insurance company’s state of domicile imposes risk-based capital (“RBC”) requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Regulatory compliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC (“TAC”) to its authorized control level RBC, calculated in the manner prescribed by the NAIC (“ACL RBC”). Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC (“Company Action RBC”). The RBC ratios for Metropolitan Life Insurance Company and each of its insurance subsidiaries were in excess of 350% for all periods presented. | ||||||||||||||||||||
Metropolitan Life Insurance Company and its insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of their respective state of domicile. The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of Metropolitan Life Insurance Company and its insurance subsidiaries. | ||||||||||||||||||||
Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt, reporting of reinsurance agreements and valuing securities on a different basis. | ||||||||||||||||||||
In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. | ||||||||||||||||||||
The Department of Financial Services issues an annual “Special Considerations” circular letter to New York licensed insurers requiring tests to be performed as part of insurers’ year-end asset adequacy testing. The Department of Financial Services issued its 2014 Special Considerations letter on October 10, 2014, which was substantially similar to the 2013 letter. The letter mandates the use of certain assumptions in asset adequacy testing. In 2013, MLIC established a three-year grade-in schedule for the amount of LTC reserves required as a result of the new assumptions. In 2014, MLIC established an additional schedule, reflecting current economic conditions, liabilities and assets. The following table summarizes the two schedules of strengthening: | ||||||||||||||||||||
2013 Schedule | 2014 Schedule | Combined Schedule | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
2013 Strengthening | $300 | N/A | $300 | |||||||||||||||||
2014 Strengthening | $200 | $100 | $300 | |||||||||||||||||
2015 Strengthening (1) | $100 | $100 | $200 | |||||||||||||||||
2016 Strengthening (1) | N/A | $100 | $100 | |||||||||||||||||
______________ | ||||||||||||||||||||
-1 | The actual 2015 and 2016 amounts may differ from those originally estimated in 2013 and 2014 due to changes in economic conditions, regulations, or policyholder behavior. | |||||||||||||||||||
The tables below present amounts from Metropolitan Life Insurance Company and its insurance subsidiaries, which are derived from the most recent statutory–basis financial statements as filed with the insurance regulators. | ||||||||||||||||||||
Statutory net income (loss) was as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Company | State of Domicile | 2014 | 2013 | 2012 | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Metropolitan Life Insurance Company | New York | $ | 1,487 | $ | 369 | $ | 1,320 | |||||||||||||
New England Life Insurance Company | Massachusetts | $ | 303 | $ | 103 | $ | 79 | |||||||||||||
General American Life Insurance Company | Missouri | $ | 129 | $ | 60 | $ | 19 | |||||||||||||
Statutory capital and surplus was as follows at: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
Company | 2014 | 2013 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Metropolitan Life Insurance Company | $ | 12,008 | $ | 12,428 | ||||||||||||||||
New England Life Insurance Company | $ | 675 | $ | 571 | ||||||||||||||||
General American Life Insurance Company | $ | 867 | $ | 818 | ||||||||||||||||
Dividend Restrictions | ||||||||||||||||||||
The table below sets forth dividends permitted to be paid by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and dividends paid: | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Company | Permitted Without | Paid (1) | Paid (1) | |||||||||||||||||
Approval | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Metropolitan Life Insurance Company | $ | 1,200 | $ | 821 | -2 | $ | 1,428 | |||||||||||||
______________ | ||||||||||||||||||||
-1 | Includes all amounts paid, including those requiring regulatory approval. | |||||||||||||||||||
-2 | During December 2014, Metropolitan Life Insurance Company distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of $113 million, as calculated on a statutory basis. | |||||||||||||||||||
Under New York State Insurance Law, Metropolitan Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Metropolitan Life Insurance Company will be permitted to pay a dividend to MetLife, Inc. in excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “Superintendent”) and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. | ||||||||||||||||||||
The table below sets forth the dividends permitted to be paid by Metropolitan Life Insurance Company’s insurance subsidiaries without regulatory approval and dividends paid: | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Company | Permitted Without | Paid (2) | Paid (2) | |||||||||||||||||
Approval (1) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
New England Life Insurance Company | $ | 199 | $ | 227 | -3 | $ | 77 | |||||||||||||
General American Life Insurance Company | $ | 88 | $ | — | $ | — | ||||||||||||||
______________ | ||||||||||||||||||||
-1 | Reflects dividend amounts that may be paid during 2015 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over a rolling 12-month period, if paid before a specified date during 2015, some or all of such dividends may require regulatory approval. | |||||||||||||||||||
-2 | Includes all amounts paid, including those requiring regulatory approval. | |||||||||||||||||||
-3 | During December 2014, New England Life Insurance Company (“NELICO”) distributed shares of an affiliate to Metropolitan Life Insurance Company as an extraordinary in-kind dividend of $113 million, as calculated on a statutory basis. Also during December 2014, NELICO paid an extraordinary cash dividend to Metropolitan Life Insurance Company in the amount of $114 million. | |||||||||||||||||||
Under Massachusetts State Insurance Law, NELICO is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to Metropolitan Life Insurance Company as long as the aggregate amount of the dividend, when aggregated with all other dividends paid in the preceding 12 months, does not exceed the greater of: (i) 10 % of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year. NELICO will be permitted to pay a dividend to Metropolitan Life Insurance Company in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Massachusetts Commissioner of Insurance (the “Massachusetts Commissioner”) and the Massachusetts Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”) as of the last filed annual statutory statement requires insurance regulatory approval. Under Massachusetts State Insurance Law, the Massachusetts Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. | ||||||||||||||||||||
Under Missouri State Insurance Law, GALIC is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to Metropolitan Life Insurance Company as long as the amount of such dividend when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding net realized capital gains). GALIC will be permitted to pay a dividend to Metropolitan Life Insurance Company in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Missouri Director of Insurance (the “Missouri Director”) and the Missouri Director either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, unassigned funds (surplus) as of the last filed annual statutory statement requires insurance regulatory approval. Under Missouri State Insurance Law, the Missouri Director has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. | ||||||||||||||||||||
For the years ended December 31, 2014 and 2013, Metropolitan Life Insurance Company received dividends from non-insurance subsidiaries of $95 million and $45 million, respectively. | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company, net of income tax, was as follows: | ||||||||||||||||||||
Unrealized | Unrealized Gains (Losses) | Foreign Currency | Defined | Total | ||||||||||||||||
Investment Gains | on Derivatives | Translation | Benefit | |||||||||||||||||
(Losses), Net of | Adjustments | Plans | ||||||||||||||||||
Related Offsets (1) | Adjustment | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at December 31, 2011 | $ | 4,028 | $ | 840 | $ | 37 | $ | (1,851 | ) | $ | 3,054 | |||||||||
OCI before reclassifications | 2,406 | (243 | ) | (30 | ) | (618 | ) | 1,515 | ||||||||||||
Deferred income tax benefit (expense) | (843 | ) | 87 | 11 | 217 | (528 | ) | |||||||||||||
OCI before reclassifications, net of income tax | 5,591 | 684 | 18 | (2,252 | ) | 4,041 | ||||||||||||||
Amounts reclassified from AOCI | 96 | 2 | — | (148 | ) | (50 | ) | |||||||||||||
Deferred income tax benefit (expense) | (33 | ) | (1 | ) | — | 51 | 17 | |||||||||||||
Amounts reclassified from AOCI, net of income tax | 63 | 1 | — | (97 | ) | (33 | ) | |||||||||||||
Balance at December 31, 2012 | 5,654 | 685 | 18 | (2,349 | ) | 4,008 | ||||||||||||||
OCI before reclassifications | (3,321 | ) | (677 | ) | 22 | 1,396 | (2,580 | ) | ||||||||||||
Deferred income tax benefit (expense) | 1,145 | 237 | (9 | ) | (490 | ) | 883 | |||||||||||||
OCI before reclassifications, net of income tax | 3,478 | 245 | 31 | (1,443 | ) | 2,311 | ||||||||||||||
Amounts reclassified from AOCI | (16 | ) | (14 | ) | — | (205 | ) | (235 | ) | |||||||||||
Deferred income tax benefit (expense) | 6 | 5 | — | 71 | 82 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (10 | ) | (9 | ) | — | (134 | ) | (153 | ) | |||||||||||
Balance at December 31, 2013 | 3,468 | 236 | 31 | (1,577 | ) | 2,158 | ||||||||||||||
OCI before reclassifications | 4,095 | 606 | (44 | ) | (1,181 | ) | 3,476 | |||||||||||||
Deferred income tax benefit (expense) | (1,409 | ) | (212 | ) | 10 | 406 | (1,205 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 6,154 | 630 | (3 | ) | (2,352 | ) | 4,429 | |||||||||||||
Amounts reclassified from AOCI | 70 | 682 | — | 180 | 932 | |||||||||||||||
Deferred income tax benefit (expense) | (24 | ) | (239 | ) | — | (64 | ) | (327 | ) | |||||||||||
Amounts reclassified from AOCI, net of income tax | 46 | 443 | — | 116 | 605 | |||||||||||||||
Balance at December 31, 2014 | $ | 6,200 | $ | 1,073 | $ | (3 | ) | $ | (2,236 | ) | $ | 5,034 | ||||||||
__________________ | ||||||||||||||||||||
-1 | See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. | |||||||||||||||||||
Information regarding amounts reclassified out of each component of AOCI, was as follows: | ||||||||||||||||||||
AOCI Components | Amounts Reclassified from AOCI | Consolidated Statement of Operations and | ||||||||||||||||||
Comprehensive Income (Loss) Locations | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net unrealized investment gains (losses): | ||||||||||||||||||||
Net unrealized investment gains (losses) | $ | (103 | ) | $ | (9 | ) | $ | (136 | ) | Net investment gains (losses) | ||||||||||
Net unrealized investment gains (losses) | 40 | 53 | 56 | Net investment income | ||||||||||||||||
Net unrealized investment gains (losses) | (7 | ) | (28 | ) | (16 | ) | Net derivative gains (losses) | |||||||||||||
Net unrealized investment gains (losses), before income tax | (70 | ) | 16 | (96 | ) | |||||||||||||||
Income tax (expense) benefit | 24 | (6 | ) | 33 | ||||||||||||||||
Net unrealized investment gains (losses), net of income tax | $ | (46 | ) | $ | 10 | $ | (63 | ) | ||||||||||||
Unrealized gains (losses) on derivatives - cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | $ | 41 | $ | 20 | $ | 3 | Net derivative gains (losses) | |||||||||||||
Interest rate swaps | 9 | 8 | 4 | Net investment income | ||||||||||||||||
Interest rate forwards | (8 | ) | 1 | — | Net derivative gains (losses) | |||||||||||||||
Interest rate forwards | 2 | 2 | 2 | Net investment income | ||||||||||||||||
Foreign currency swaps | (725 | ) | (15 | ) | (7 | ) | Net derivative gains (losses) | |||||||||||||
Foreign currency swaps | (2 | ) | (3 | ) | (5 | ) | Net investment income | |||||||||||||
Credit forwards | 1 | 1 | 1 | Net investment income | ||||||||||||||||
Gains (losses) on cash flow hedges, before income tax | (682 | ) | 14 | (2 | ) | |||||||||||||||
Income tax (expense) benefit | 239 | (5 | ) | 1 | ||||||||||||||||
Gains (losses) on cash flow hedges, net of income tax | $ | (443 | ) | $ | 9 | $ | (1 | ) | ||||||||||||
Defined benefit plans adjustment: (1) | ||||||||||||||||||||
Amortization of net actuarial gains (losses) | $ | (180 | ) | $ | 274 | $ | 246 | |||||||||||||
Amortization of prior service (costs) credit | — | (69 | ) | (98 | ) | |||||||||||||||
Amortization of defined benefit plan items, before income tax | (180 | ) | 205 | 148 | ||||||||||||||||
Income tax (expense) benefit | 64 | (71 | ) | (51 | ) | |||||||||||||||
Amortization of defined benefit plan items, net of income tax | $ | (116 | ) | $ | 134 | $ | 97 | |||||||||||||
Total reclassifications, net of income tax | $ | (605 | ) | $ | 153 | $ | 33 | |||||||||||||
__________________ | ||||||||||||||||||||
-1 | These AOCI components are included in the computation of net periodic benefit costs. See Note 15. |
Other_Expenses
Other Expenses | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||
Other Expenses | 14. Other Expenses | |||||||||||||||||||||||||||||||||||
Information on other expenses was as follows: | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Compensation | $ | 2,257 | $ | 2,392 | $ | 2,426 | ||||||||||||||||||||||||||||||
Pension, postretirement and postemployment benefit costs | 322 | 364 | 285 | |||||||||||||||||||||||||||||||||
Commissions | 828 | 781 | 769 | |||||||||||||||||||||||||||||||||
Volume-related costs | 70 | 253 | 241 | |||||||||||||||||||||||||||||||||
Affiliated interest costs on ceded and assumed reinsurance | 1,009 | 1,033 | 1,209 | |||||||||||||||||||||||||||||||||
Capitalization of DAC | (424 | ) | (562 | ) | (632 | ) | ||||||||||||||||||||||||||||||
Amortization of DAC and VOBA | 695 | 261 | 991 | |||||||||||||||||||||||||||||||||
Interest expense on debt | 151 | 153 | 152 | |||||||||||||||||||||||||||||||||
Premium taxes, licenses and fees | 328 | 263 | 294 | |||||||||||||||||||||||||||||||||
Professional services | 1,013 | 989 | 946 | |||||||||||||||||||||||||||||||||
Rent and related expenses, net of sublease income | 128 | 143 | 123 | |||||||||||||||||||||||||||||||||
Other | (306 | ) | (82 | ) | (410 | ) | ||||||||||||||||||||||||||||||
Total other expenses | $ | 6,071 | $ | 5,988 | $ | 6,394 | ||||||||||||||||||||||||||||||
Capitalization of DAC and Amortization of DAC and VOBA | ||||||||||||||||||||||||||||||||||||
See Note 5 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 7 for a description of the DAC amortization impact associated with the closed block. | ||||||||||||||||||||||||||||||||||||
Interest Expense on Debt | ||||||||||||||||||||||||||||||||||||
Interest expense on debt includes interest expense (see Note 12) and interest expense related to CSEs. See Note 8. | ||||||||||||||||||||||||||||||||||||
Affiliated Expenses | ||||||||||||||||||||||||||||||||||||
Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Notes 6, 12 and 19 for a discussion of affiliated expenses included in the table above. | ||||||||||||||||||||||||||||||||||||
Restructuring Charges | ||||||||||||||||||||||||||||||||||||
MetLife, Inc. commenced an enterprise-wide strategic initiative in 2012. This global strategy focuses on leveraging MetLife, Inc. and its subsidiaries’ scale to improve the value they provide to customers and shareholders in order to reduce costs, enhance revenues, achieve efficiencies and reinvest in their technology, platforms and functionality to improve their current operations and develop new capabilities. | ||||||||||||||||||||||||||||||||||||
These restructuring charges are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Information regarding restructuring charges was as follows: | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Severance | Lease and | Total | Severance | Lease and | Total | Severance | Lease and | Total | ||||||||||||||||||||||||||||
Asset | Asset | Asset | ||||||||||||||||||||||||||||||||||
Impairment | Impairment | Impairment | ||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 39 | $ | 6 | $ | 45 | $ | 22 | $ | — | $ | 22 | $ | — | $ | — | $ | — | ||||||||||||||||||
Restructuring charges | 66 | 8 | 74 | 87 | 16 | 103 | 101 | 18 | 119 | |||||||||||||||||||||||||||
Cash payments | (74 | ) | (8 | ) | (82 | ) | (70 | ) | (10 | ) | (80 | ) | (79 | ) | (18 | ) | (97 | ) | ||||||||||||||||||
Balance at December 31, | $ | 31 | $ | 6 | $ | 37 | $ | 39 | $ | 6 | $ | 45 | $ | 22 | $ | — | $ | 22 | ||||||||||||||||||
Total restructuring charges incurred since inception of initiative | $ | 254 | $ | 42 | $ | 296 | $ | 188 | $ | 34 | $ | 222 | $ | 101 | $ | 18 | $ | 119 | ||||||||||||||||||
Management anticipates further restructuring charges including severance, as well as lease and asset impairments, through the year ending December 31, 2016. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at December 31, 2014. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | 15. Employee Benefit Plans | |||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||
The Company sponsors and administers various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits based upon years of credited service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as earnings credits, determined annually based upon the average annual rate of interest on 30-year U.S. Treasury securities, for each account balance. At December 31, 2014, the majority of active participants were accruing benefits under the cash balance formula; however, 89% of the Company’s obligations result from benefits calculated with the traditional formula. The non-qualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated a proportionate share of net expense related to the plans, as well as contributions made to the plans. | ||||||||||||||||||||||||||||||||||||||||
The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Employees of the Company who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for the Company may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans. | ||||||||||||||||||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits (1) | Other Postretirement Benefits | Pension Benefits (1) | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||||||||||
Benefit obligations at January 1, | $ | 8,130 | $ | 1,861 | $ | 8,937 | $ | 2,402 | ||||||||||||||||||||||||||||||||
Service costs | 183 | 14 | 214 | 20 | ||||||||||||||||||||||||||||||||||||
Interest costs | 413 | 92 | 367 | 92 | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 1,461 | 264 | (967 | ) | (550 | ) | ||||||||||||||||||||||||||||||||||
Settlements and curtailments | (13 | ) | (6 | ) | — | — | ||||||||||||||||||||||||||||||||||
Change in benefits and other | 574 | (16 | ) | 26 | — | |||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Foreign exchange impact | — | (1 | ) | — | — | |||||||||||||||||||||||||||||||||||
Benefit obligations at December 31, | 10,262 | 2,129 | 8,130 | 1,861 | ||||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1, | 7,305 | 1,352 | 7,390 | 1,320 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 1,018 | 112 | (20 | ) | 57 | |||||||||||||||||||||||||||||||||||
Change in benefits and other | 523 | — | 28 | — | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Employer contributions | 390 | 41 | 354 | 78 | ||||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31, | 8,750 | 1,426 | 7,305 | 1,352 | ||||||||||||||||||||||||||||||||||||
Over (under) funded status at December 31, | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets | ||||||||||||||||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 213 | $ | — | ||||||||||||||||||||||||||||||||
Other liabilities | (1,512 | ) | (703 | ) | (1,038 | ) | (509 | ) | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
AOCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | $ | 3,034 | $ | 420 | $ | 2,207 | $ | 209 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (2 | ) | (10 | ) | 17 | 1 | ||||||||||||||||||||||||||||||||||
AOCI, before income tax | $ | 3,032 | $ | 410 | $ | 2,224 | $ | 210 | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 9,729 | N/A | $ | 7,689 | N/A | ||||||||||||||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Includes non-qualified unfunded plans, for which the aggregate PBO was $1.3 billion and $1.0 billion at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension benefit plans with accumulated benefit obligations in excess of plan assets was as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Projected benefit obligations | $ | 1,981 | $ | 1,037 | ||||||||||||||||||||||||||||||||||||
Accumulated benefit obligations | $ | 1,789 | $ | 927 | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 676 | $ | — | ||||||||||||||||||||||||||||||||||||
Information for pension and other postretirement benefit plans with a PBO in excess of plan assets were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement | Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Projected benefit obligations | $ | 10,241 | $ | 2,129 | $ | 1,170 | $ | 1,863 | ||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 8,719 | $ | 1,426 | $ | 133 | $ | 1,353 | ||||||||||||||||||||||||||||||||
Net Periodic Benefit Costs | ||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs are determined using management estimates and actuarial assumptions to derive service costs, interest costs and expected return on plan assets for a particular year. Net periodic benefit costs also includes the applicable amortization of net actuarial (gains) losses and amortization of any prior service costs (credit). | ||||||||||||||||||||||||||||||||||||||||
The obligations and expenses associated with these plans require an extensive use of assumptions such as the discount rate, expected rate of return on plan assets, rate of future compensation increases, healthcare cost trend rates, as well as assumptions regarding participant demographics such as rate and age of retirements, withdrawal rates and mortality. Management, in consultation with its external consulting actuarial firms, determines these assumptions based upon a variety of factors such as historical performance of the plan and its assets, currently available market and industry data and expected benefit payout streams. The assumptions used may differ materially from actual results due to, among other factors, changing market and economic conditions and changes in participant demographics. These differences may have a significant effect on the Company’s consolidated financial statements and liquidity. | ||||||||||||||||||||||||||||||||||||||||
Net periodic pension costs and net periodic other postretirement benefit plan costs are comprised of the following: | ||||||||||||||||||||||||||||||||||||||||
• | Service Costs — Service costs are the increase in the projected (expected) PBO resulting from benefits payable to employees of the Company on service rendered during the current year. | |||||||||||||||||||||||||||||||||||||||
• | Interest Costs — Interest costs are the time value adjustment on the projected (expected) PBO at the end of each year. | |||||||||||||||||||||||||||||||||||||||
• | Settlement and Curtailment Costs — The aggregate amount of net (gains) losses recognized in net periodic benefit costs is due to settlements and curtailments. Settlements result from actions that relieve/eliminate the plan’s responsibility for benefit obligations or risks associated with the obligations or assets used for the settlement. Curtailments result from an event that significantly reduces/eliminates plan participants’ expected years of future services or benefit accruals. | |||||||||||||||||||||||||||||||||||||||
• | Expected Return on Plan Assets — Expected return on plan assets is the assumed return earned by the accumulated pension and other postretirement fund assets in a particular year. | |||||||||||||||||||||||||||||||||||||||
• | Amortization of Net Actuarial (Gains) Losses — Actuarial gains and losses result from differences between the actual experience and the expected experience on pension and other postretirement plan assets or projected (expected) PBO during a particular period. These gains and losses are accumulated and, to the extent they exceed 10% of the greater of the PBO or the fair value of plan assets, the excess is amortized into pension and other postretirement benefit costs over the expected service years of the employees. | |||||||||||||||||||||||||||||||||||||||
• | Amortization of Prior Service Costs (Credit) — These costs relate to the recognition of increases or decreases in pension and other postretirement benefit obligation due to amendments in plans or initiation of new plans. These increases or decreases in obligation are recognized in AOCI at the time of the amendment. These costs are then amortized to pension and other postretirement benefit costs over the expected service years of the employees affected by the change. | |||||||||||||||||||||||||||||||||||||||
The Company’s proportionate share of components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs | ||||||||||||||||||||||||||||||||||||||||
Service costs | $ | 200 | $ | 14 | $ | 214 | $ | 17 | $ | 195 | $ | 31 | ||||||||||||||||||||||||||||
Interest costs | 437 | 92 | 366 | 85 | 383 | 97 | ||||||||||||||||||||||||||||||||||
Settlement and curtailment costs | 14 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (475 | ) | (75 | ) | (453 | ) | (74 | ) | (456 | ) | (76 | ) | ||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses | 169 | 11 | 219 | 51 | 188 | 53 | ||||||||||||||||||||||||||||||||||
Amortization of prior service costs (credit) | 1 | (1 | ) | 6 | (69 | ) | 6 | (97 | ) | |||||||||||||||||||||||||||||||
Allocated to affiliates | (54 | ) | (11 | ) | (12 | ) | — | (12 | ) | (1 | ) | |||||||||||||||||||||||||||||
Total net periodic benefit costs (credit) | 292 | 32 | 340 | 10 | 304 | 7 | ||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in OCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 996 | 222 | (492 | ) | (532 | ) | 705 | 232 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (18 | ) | (12 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses | (169 | ) | (11 | ) | (219 | ) | (55 | ) | (189 | ) | (57 | ) | ||||||||||||||||||||||||||||
Amortization of prior service (costs) credit | (1 | ) | 1 | (6 | ) | 75 | (6 | ) | 104 | |||||||||||||||||||||||||||||||
Total recognized in OCI | 808 | 200 | (717 | ) | (512 | ) | 510 | 279 | ||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit costs and OCI | $ | 1,100 | $ | 232 | $ | (377 | ) | $ | (502 | ) | $ | 814 | $ | 286 | ||||||||||||||||||||||||||
The estimated net actuarial (gains) losses and prior service costs (credit) for the pension plans and the defined benefit other postretirement benefit plans that will be amortized from AOCI into net periodic benefit costs over the next year are $200 million and ($1) million, and $31 million and ($4) million, respectively. | ||||||||||||||||||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||||||||||||||
Assumptions used in determining benefit obligations were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Weighted average discount rate | 4.10% | 4.10% | 5.15% | 5.15% | ||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 2.25 | % | - | 8.50% | N/A | 3.5 | % | - | 7.50% | N/A | ||||||||||||||||||||||||||||||
Assumptions used in determining net periodic benefit costs were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
Weighted average discount rate | 5.15% | 5.15% | 4.20% | 4.20% | 4.95% | 4.95% | ||||||||||||||||||||||||||||||||||
Weighted average expected rate of return on plan assets | 6.25% | 5.70% | 6.24% | 5.76% | 7.00% | 6.26% | ||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.5 | % | - | 7.50% | N/A | 3.5 | % | - | 7.50% | N/A | 3.5 | % | - | 7.50% | N/A | |||||||||||||||||||||||||
The weighted average discount rate is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the valuation date, which would provide the necessary future cash flows to pay the aggregate PBO when due. | ||||||||||||||||||||||||||||||||||||||||
The weighted average expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the Company’s long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the Company’s policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. | ||||||||||||||||||||||||||||||||||||||||
The weighted average expected rate of return on plan assets for use in that plan’s valuation in 2015 is currently anticipated to be 6.24% for pension benefits and 5.65% for other postretirement benefits. | ||||||||||||||||||||||||||||||||||||||||
The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pre-and Post-Medicare eligible claims | 6.4% for 2015, gradually decreasing each year for Pre-Medicare until 2094 reaching the ultimate rate of 4.4% and for Post-Medicare until 2089 reaching the ultimate rate of 4.7% | 6.4% in 2014, gradually decreasing each year until 2094 reaching the ultimate rate of 4.4% for Pre-Medicare and 4.6% for Post-Medicare. | ||||||||||||||||||||||||||||||||||||||
Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare costs trend rates would have the following effects as of December 31, 2014: | ||||||||||||||||||||||||||||||||||||||||
One Percent | One Percent | |||||||||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Effect on total of service and interest costs components | $ | 14 | $ | (11 | ) | |||||||||||||||||||||||||||||||||||
Effect of accumulated postretirement benefit obligations | $ | 302 | $ | (245 | ) | |||||||||||||||||||||||||||||||||||
As of December 31, 2014, the improved mortality rate assumption used for all U.S. pension and postretirement benefit plans is the RP-2000 healthy mortality table projected generationally using 175% of Scale AA. The mortality rate assumption was revised based upon the results of a comprehensive study of MetLife’s demographic experience and reflects the current best estimate of expected mortality rates for MetLife’s participant population. Prior to December 31, 2014, the mortality rate assumption used to value the benefit obligations and net periodic benefit cost for these plans was the RP-2000 healthy mortality table projected generationally using 100% of Scale AA. | ||||||||||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||||||||||
The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as defined in Note 10, based upon the significant input with the lowest level in its valuation. The following summarizes the types of assets included within the three-level fair value hierarchy presented below. | ||||||||||||||||||||||||||||||||||||||||
Level 1 | This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and short-term investments which have unadjusted quoted market prices in active markets for identical assets and liabilities. | |||||||||||||||||||||||||||||||||||||||
Level 2 | This category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate account is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data. | |||||||||||||||||||||||||||||||||||||||
Directly held investments are primarily invested in U.S. and foreign government and corporate securities. | ||||||||||||||||||||||||||||||||||||||||
Level 3 | This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and other investments that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data. | |||||||||||||||||||||||||||||||||||||||
Certain separate accounts are invested in investment partnerships designated as hedge funds. The values for these separate accounts is determined monthly based on the NAV of the underlying hedge fund investment. Additionally, such hedge funds generally contain lock out or other waiting period provisions for redemption requests to be filled. While the reporting and redemption restrictions may limit the frequency of trading activity in separate accounts invested in hedge funds, the reported NAV, and thus the referenced value of the separate account, provides a reasonable level of price transparency that can be corroborated through observable market data. | ||||||||||||||||||||||||||||||||||||||||
The Company provides employees with benefits under various Employee Retirement Income Security Act of 1974 (“ERISA”) benefit plans. These include qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of the Company’s qualified pension plans are held in an insurance group annuity contract, and the vast majority of the assets of the postretirement medical plan and backing the retiree life coverage are held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company’s insurance affiliates, and the assets under the contracts are held in insurance separate accounts that have been established by the Company. The underlying assets of the separate accounts are principally comprised of cash and cash equivalents, short-term investments, fixed maturity and equity securities, derivatives, real estate, private equity investments and hedge fund investments. | ||||||||||||||||||||||||||||||||||||||||
The insurance contract provider engages investment management firms (“Managers”) to serve as sub-advisors for the separate accounts based on the specific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling of securities and other investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separate account. The assets of the qualified pension plans and postretirement medical plans (the “Invested Plans”) are well diversified across multiple asset categories and across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any given Manager. | ||||||||||||||||||||||||||||||||||||||||
The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan’s funded status; (ii) minimizing the volatility of the Invested Plan’s funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan’s investments. Independent investment consultants are periodically used to evaluate the investment risk of Invested Plan’s assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and to recommend asset allocations. | ||||||||||||||||||||||||||||||||||||||||
Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted. | ||||||||||||||||||||||||||||||||||||||||
The table below summarizes the actual weighted average allocation of the fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2014 for the Invested Plans: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension | Postretirement Medical | Postretirement Life | Pension | Postretirement Medical | Postretirement Life | |||||||||||||||||||||||||||||||||||
Target | Actual | Target | Actual | Target | Actual | Actual | Actual | Actual | ||||||||||||||||||||||||||||||||
Allocation | Allocation | Allocation | Allocation | Allocation | Allocation | |||||||||||||||||||||||||||||||||||
Asset Class | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities (1) | 75 | % | 69 | % | 70 | % | 71 | % | — | % | — | % | 64 | % | 66 | % | — | % | ||||||||||||||||||||||
Equity securities (2) | 12 | % | 15 | % | 30 | % | 27 | % | — | % | — | % | 23 | % | 33 | % | — | % | ||||||||||||||||||||||
Alternative securities (3) | 13 | % | 16 | % | — | % | 2 | % | 100 | % | 100 | % | 13 | % | 1 | % | 100 | % | ||||||||||||||||||||||
Total assets | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Fixed maturity securities include ABS, collateralized mortgage obligations, corporate, federal agency, foreign bonds, mortgage-backed securities, municipals, preferred stocks, U.S. government bonds and exchange traded funds. Certain prior year amounts have been reclassified from equity securities into fixed maturity securities to conform to the current year presentation. | |||||||||||||||||||||||||||||||||||||||
-2 | Equity securities primarily include common stock of U.S. companies. | |||||||||||||||||||||||||||||||||||||||
-3 | Alternative securities primarily include derivative assets, money market securities, short-term investments and other investments. Postretirement life’s target and actual allocation of plan assets are all in short-term investments. | |||||||||||||||||||||||||||||||||||||||
The pension and postretirement plan assets measured at estimated fair value on a recurring basis were determined as described in “— Plan Assets.” These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
Fair | Fair | |||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate | $ | — | $ | 2,638 | $ | 80 | $ | 2,718 | $ | 42 | $ | 244 | $ | 3 | $ | 289 | ||||||||||||||||||||||||
U.S. government bonds | 1,605 | 223 | — | 1,828 | 169 | 12 | — | 181 | ||||||||||||||||||||||||||||||||
Foreign bonds | — | 718 | 17 | 735 | — | 68 | — | 68 | ||||||||||||||||||||||||||||||||
Federal agencies | — | 254 | — | 254 | — | 35 | — | 35 | ||||||||||||||||||||||||||||||||
Municipals | — | 270 | — | 270 | — | 74 | — | 74 | ||||||||||||||||||||||||||||||||
Other (1) | — | 188 | 8 | 196 | — | 63 | — | 63 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 1,605 | 4,291 | 105 | 6,001 | 211 | 496 | 3 | 710 | ||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||
Common stock - domestic | 951 | — | — | 951 | 188 | — | — | 188 | ||||||||||||||||||||||||||||||||
Common stock - foreign | 394 | — | — | 394 | 80 | — | — | 80 | ||||||||||||||||||||||||||||||||
Total equity securities | 1,345 | — | — | 1,345 | 268 | — | — | 268 | ||||||||||||||||||||||||||||||||
Other investments | — | 24 | 743 | 767 | — | — | — | — | ||||||||||||||||||||||||||||||||
Short-term investments | 189 | 273 | — | 462 | 14 | 433 | — | 447 | ||||||||||||||||||||||||||||||||
Money market securities | 29 | 56 | — | 85 | — | — | — | — | ||||||||||||||||||||||||||||||||
Derivative assets | 11 | 7 | 72 | 90 | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||
Total assets | $ | 3,179 | $ | 4,651 | $ | 920 | $ | 8,750 | $ | 493 | $ | 930 | $ | 3 | $ | 1,426 | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
Fair | Fair | |||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate | $ | — | $ | 1,948 | $ | 55 | $ | 2,003 | $ | 77 | $ | 170 | $ | 1 | $ | 248 | ||||||||||||||||||||||||
U.S. government bonds | 868 | 156 | — | 1,024 | 135 | 5 | — | 140 | ||||||||||||||||||||||||||||||||
Foreign bonds | — | 675 | 10 | 685 | — | 63 | — | 63 | ||||||||||||||||||||||||||||||||
Federal agencies | — | 274 | — | 274 | — | 33 | — | 33 | ||||||||||||||||||||||||||||||||
Municipals | — | 206 | — | 206 | 55 | 15 | — | 70 | ||||||||||||||||||||||||||||||||
Other (1) | — | 460 | 19 | 479 | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 868 | 3,719 | 84 | 4,671 | 267 | 340 | 1 | 608 | ||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||
Common stock - domestic | 1,064 | 21 | 139 | 1,224 | 196 | — | — | 196 | ||||||||||||||||||||||||||||||||
Common stock - foreign | 432 | — | — | 432 | 102 | — | — | 102 | ||||||||||||||||||||||||||||||||
Total equity securities | 1,496 | 21 | 139 | 1,656 | 298 | — | — | 298 | ||||||||||||||||||||||||||||||||
Other investments | — | — | 563 | 563 | — | — | — | — | ||||||||||||||||||||||||||||||||
Short-term investments | 49 | 290 | — | 339 | — | 439 | — | 439 | ||||||||||||||||||||||||||||||||
Money market securities | 1 | 12 | — | 13 | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||
Derivative assets | 16 | 14 | 33 | 63 | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||
Total assets | $ | 2,430 | $ | 4,056 | $ | 819 | $ | 7,305 | $ | 569 | $ | 782 | $ | 1 | $ | 1,352 | ||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Other primarily includes mortgage-backed securities, collateralized mortgage obligations and ABS. | |||||||||||||||||||||||||||||||||||||||
A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows: | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity | Equity | Fixed Maturity | ||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||||||||||||||||||||||
Corporate | Foreign | Other (1) | Common | Other | Derivative | Corporate | Municipals | Other (1) | Derivative | |||||||||||||||||||||||||||||||
Bonds | Stock - | Investments | Assets | Assets | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 55 | $ | 10 | $ | 19 | $ | 139 | $ | 563 | $ | 33 | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Realized gains (losses) | 3 | — | — | — | (13 | ) | (16 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Unrealized gains (losses) | — | — | — | — | 114 | 19 | 1 | — | — | — | ||||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | 11 | 5 | (2 | ) | — | (104 | ) | 34 | 1 | — | — | — | ||||||||||||||||||||||||||||
Transfers into and/or out of Level 3 | 11 | 2 | (9 | ) | (139 | ) | 183 | 2 | — | — | — | — | ||||||||||||||||||||||||||||
Balance at December 31, | $ | 80 | $ | 17 | $ | 8 | $ | — | $ | 743 | $ | 72 | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity | Equity | Fixed Maturity | ||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||||||||||||||||||||||
Corporate | Foreign | Other (1) | Common | Other | Derivative | Corporate | Municipals | Other (1) | Derivative | |||||||||||||||||||||||||||||||
Bonds | Stock - | Investments | Assets | Assets | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 18 | $ | 7 | $ | 7 | $ | 129 | $ | 419 | $ | 1 | $ | 4 | $ | 1 | $ | 3 | $ | — | ||||||||||||||||||||
Realized gains (losses) | — | — | — | (1 | ) | — | (2 | ) | — | — | (3 | ) | — | |||||||||||||||||||||||||||
Unrealized gains (losses) | (2 | ) | 1 | — | 9 | 56 | (17 | ) | — | — | 4 | — | ||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | 17 | (3 | ) | 11 | 2 | (58 | ) | 51 | (3 | ) | (1 | ) | (4 | ) | — | |||||||||||||||||||||||||
Transfers into and/or out of Level 3 | 22 | 5 | 1 | — | 146 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at December 31, | $ | 55 | $ | 10 | $ | 19 | $ | 139 | $ | 563 | $ | 33 | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity | Equity | Fixed Maturity | ||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||||||||||||||||||||||
Corporate | Foreign | Other (1) | Common | Other | Derivative | Corporate | Municipals | Other (1) | Derivative | |||||||||||||||||||||||||||||||
Bonds | Stock - | Investments | Assets | Assets | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 30 | $ | 5 | $ | 2 | $ | 194 | $ | 501 | $ | 4 | $ | 4 | $ | 1 | $ | 5 | $ | 1 | ||||||||||||||||||||
Realized gains (losses) | — | — | — | (25 | ) | 52 | 4 | — | — | (2 | ) | 2 | ||||||||||||||||||||||||||||
Unrealized gains (losses) | (1 | ) | 8 | 1 | 9 | (38 | ) | (6 | ) | — | — | 2 | (2 | ) | ||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | (11 | ) | (6 | ) | 4 | (49 | ) | (96 | ) | (1 | ) | — | — | (2 | ) | (1 | ) | |||||||||||||||||||||||
Transfers into and/or out of Level 3 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at December 31, | $ | 18 | $ | 7 | $ | 7 | $ | 129 | $ | 419 | $ | 1 | $ | 4 | $ | 1 | $ | 3 | $ | — | ||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Other includes ABS and collateralized mortgage obligations. | |||||||||||||||||||||||||||||||||||||||
Expected Future Contributions and Benefit Payments | ||||||||||||||||||||||||||||||||||||||||
It is the Company’s practice to make contributions to the qualified pension plan to comply with minimum funding requirements of ERISA. In accordance with such practice, no contributions are required for 2015. The Company expects to make discretionary contributions to the qualified pension plan of $300 million in 2015. For information on employer contributions, see “— Obligations and Funded Status.” | ||||||||||||||||||||||||||||||||||||||||
Benefit payments due under the non-qualified pension plans are primarily funded from the Company’s general assets as they become due under the provision of the plans, therefore benefit payments equal employer contributions. The Company expects to make contributions of $70 million to fund the benefit payments in 2015. | ||||||||||||||||||||||||||||||||||||||||
Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the Company; or (iii) both. Current regulations do not require funding for these benefits. The Company uses its general assets, net of participant’s contributions, to pay postretirement medical claims as they come due. As permitted under the terms of the governing trust document, the Company may be reimbursed from plan assets for postretirement medical claims paid from their general assets. The Company expects to make contributions of $50 million towards benefit obligations in 2015 to pay postretirement medical claims. | ||||||||||||||||||||||||||||||||||||||||
Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows: | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
2015 | $ | 490 | $ | 81 | ||||||||||||||||||||||||||||||||||||
2016 | $ | 507 | $ | 82 | ||||||||||||||||||||||||||||||||||||
2017 | $ | 531 | $ | 85 | ||||||||||||||||||||||||||||||||||||
2018 | $ | 544 | $ | 88 | ||||||||||||||||||||||||||||||||||||
2019 | $ | 565 | $ | 92 | ||||||||||||||||||||||||||||||||||||
2020-2024 | $ | 3,134 | $ | 522 | ||||||||||||||||||||||||||||||||||||
Additional Information | ||||||||||||||||||||||||||||||||||||||||
As previously discussed, most of the assets of the pension benefit plan are held in a group annuity contract issued by the Company while some of the assets of the postretirement benefit plans are held in a trust which largely utilizes life insurance contracts issued by the Company to hold such assets. Total revenues from these contracts recognized in the consolidated statements of operations were $50 million, $49 million and $54 million for the years ended December 31, 2014, 2013 and 2012, respectively, and included policy charges and net investment income from investments backing the contracts and administrative fees. Total investment income (loss), including realized and unrealized gains (losses), credited to the account balances was $1.2 billion, $20 million and $867 million for the years ended December 31, 2014, 2013 and 2012, respectively. The terms of these contracts are consistent in all material respects with those the Company offers to unaffiliated parties that are similarly situated. | ||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||||||||||
The Company sponsors defined contribution plans for substantially all Company employees under which a portion of employee contributions are matched. The Company contributed $68 million, $84 million and $83 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Income_Tax
Income Tax | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax | 16. Income Tax | |||||||||||
The provision for income tax from continuing operations was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 901 | $ | 789 | $ | 675 | ||||||
State and local | 3 | 2 | 2 | |||||||||
Foreign | 74 | 176 | 176 | |||||||||
Subtotal | 978 | 967 | 853 | |||||||||
Deferred: | ||||||||||||
Federal | 538 | (411 | ) | 346 | ||||||||
Foreign | 16 | 125 | (144 | ) | ||||||||
Subtotal | 554 | (286 | ) | 202 | ||||||||
Provision for income tax expense (benefit) | $ | 1,532 | $ | 681 | $ | 1,055 | ||||||
The Company’s income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Income (loss) from continuing operations: | ||||||||||||
Domestic | $ | 5,335 | $ | 2,540 | $ | 3,153 | ||||||
Foreign | 56 | 282 | 545 | |||||||||
Total | $ | 5,391 | $ | 2,822 | $ | 3,698 | ||||||
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for continuing operations was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Tax provision at U.S. statutory rate | $ | 1,887 | $ | 988 | $ | 1,294 | ||||||
Tax effect of: | ||||||||||||
Dividend received deduction | (82 | ) | (66 | ) | (75 | ) | ||||||
Tax-exempt income | (40 | ) | (42 | ) | (43 | ) | ||||||
Prior year tax | 11 | 29 | 10 | |||||||||
Low income housing tax credits | (205 | ) | (190 | ) | (142 | ) | ||||||
Other tax credits | (66 | ) | (44 | ) | (18 | ) | ||||||
Foreign tax rate differential | — | 2 | 3 | |||||||||
Change in valuation allowance | — | (4 | ) | 13 | ||||||||
Other, net | 27 | 8 | 13 | |||||||||
Provision for income tax expense (benefit) | $ | 1,532 | $ | 681 | $ | 1,055 | ||||||
Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Deferred income tax assets: | ||||||||||||
Policyholder liabilities and receivables | $ | 1,577 | $ | 1,823 | ||||||||
Net operating loss carryforwards | 29 | 64 | ||||||||||
Employee benefits | 1,015 | 649 | ||||||||||
Capital loss carryforwards | — | 14 | ||||||||||
Tax credit carryforwards | 979 | 909 | ||||||||||
Litigation-related and government mandated | 259 | 223 | ||||||||||
Other | 309 | 349 | ||||||||||
Total gross deferred income tax assets | 4,168 | 4,031 | ||||||||||
Less: Valuation allowance | 22 | 72 | ||||||||||
Total net deferred income tax assets | 4,146 | 3,959 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Investments, including derivatives | 2,402 | 2,021 | ||||||||||
Intangibles | 72 | 77 | ||||||||||
DAC | 1,568 | 1,600 | ||||||||||
Net unrealized investment gains | 3,903 | 2,019 | ||||||||||
Other | 36 | 27 | ||||||||||
Total deferred income tax liabilities | 7,981 | 5,744 | ||||||||||
Net deferred income tax asset (liability) | $ | (3,835 | ) | $ | (1,785 | ) | ||||||
See Note 1 for information regarding new guidance adopted by the Company related to the presentation of an unrecognized tax benefit. | ||||||||||||
The Company has recorded a $50 million reduction of valuation allowance as a balance sheet reclassification with other deferred tax assets. The valuation allowance reflects management’s assessment, based on available information, that it is more likely than not that the deferred income tax asset for certain state net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it is more likely than not that these deferred income tax assets are realizable. | ||||||||||||
The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2014. | ||||||||||||
Net Operating Loss Carryforwards | ||||||||||||
Domestic | State | |||||||||||
(In millions) | ||||||||||||
Expiration | ||||||||||||
2015-2019 | $ | — | $ | 32 | ||||||||
2020-2024 | — | 44 | ||||||||||
2025-2029 | — | 53 | ||||||||||
2030-2034 | 21 | 8 | ||||||||||
Indefinite | — | — | ||||||||||
$ | 21 | $ | 137 | |||||||||
The following table sets forth the general business credits, foreign tax credits, and other tax credit carryforwards for tax purposes at December 31, 2014. | ||||||||||||
Tax Credit Carryforwards | ||||||||||||
General Business Credits | Foreign Tax Credits | Other | ||||||||||
(In millions) | ||||||||||||
Expiration | ||||||||||||
2015-2019 | $ | — | $ | — | $ | — | ||||||
2020-2024 | — | 301 | — | |||||||||
2025-2029 | 4 | — | — | |||||||||
2030-2034 | 832 | — | — | |||||||||
Indefinite | — | — | 32 | |||||||||
$ | 836 | $ | 301 | $ | 32 | |||||||
The Company participates in a tax sharing agreement with MetLife, Inc. as described in Note 1. Pursuant to this tax sharing agreement, the amounts due to (from) affiliates included ($24) million, $157 million and ($14) million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as foreign jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”) and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2007, except for 2000 through 2006 where the IRS disallowance relates predominantly to certain tax credits claimed and the Company continues to protest. | ||||||||||||
During June 2014, the IRS concluded its audit of the Company’s tax returns for the years 2003 through 2006 and issued a Revenue Agent’s report. The Company agreed with certain tax adjustments and filed a protest in July 2014 for other tax adjustments. Management believes it has established adequate tax liabilities and final resolution of the audit for the years 2003 through 2006 is not expected to have a material impact on the Company’s financial statements. | ||||||||||||
The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | 532 | $ | 532 | $ | 525 | ||||||
Additions for tax positions of prior years | 27 | 50 | 27 | |||||||||
Reductions for tax positions of prior years | (13 | ) | (4 | ) | (5 | ) | ||||||
Additions for tax positions of current year | 3 | 3 | — | |||||||||
Settlements with tax authorities | (3 | ) | (49 | ) | (15 | ) | ||||||
Balance at December 31, | $ | 546 | $ | 532 | $ | 532 | ||||||
Unrecognized tax benefits that, if recognized would impact the effective rate | $ | 497 | $ | 491 | $ | 466 | ||||||
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. | ||||||||||||
Interest was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Interest recognized in the consolidated statements of operations | $ | 37 | $ | 17 | $ | 8 | ||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Interest included in other liabilities in the consolidated balance sheets | $ | 265 | $ | 228 | ||||||||
The Company had no penalties for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
The U.S. Treasury Department and the IRS have indicated that they intend to address through regulations the methodology to be followed in determining the dividends received deduction (“DRD”), related to variable life insurance and annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate of 35%. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the years ended December 31, 2014 and 2013, the Company recognized an income tax benefit of $92 million and $53 million, respectively, related to the separate account DRD. The 2014 benefit included a benefit of $16 million related to a true-up of the 2013 tax return. The 2013 benefit included an expense of $7 million related to a true-up of the 2012 tax return. |
Contingencies_Commitments_and_
Contingencies, Commitments and Guarantees | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Contingencies, Commitments and Guarantees | 17. Contingencies, Commitments and Guarantees | |||||||||||
Contingencies | ||||||||||||
Litigation | ||||||||||||
The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. | ||||||||||||
Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. | ||||||||||||
The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at December 31, 2014. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. | ||||||||||||
Matters as to Which an Estimate Can Be Made | ||||||||||||
For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of December 31, 2014, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $390 million. | ||||||||||||
Matters as to Which an Estimate Cannot Be Made | ||||||||||||
For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. | ||||||||||||
Asbestos-Related Claims | ||||||||||||
Metropolitan Life Insurance Company is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. Metropolitan Life Insurance Company has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of Metropolitan Life Insurance Company’s employees during the period from the 1920’s through approximately the 1950’s and allege that Metropolitan Life Insurance Company learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. Metropolitan Life Insurance Company believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against Metropolitan Life Insurance Company. Metropolitan Life Insurance Company employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. | ||||||||||||
Claims asserted against Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company’s defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company owed no duty to the plaintiffs — it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company’s motions. There can be no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. | ||||||||||||
The approximate total number of asbestos personal injury claims pending against Metropolitan Life Insurance Company as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions, except number of claims) | ||||||||||||
Asbestos personal injury claims at year end | 68,460 | 67,983 | 65,812 | |||||||||
Number of new claims during the year | 4,636 | 5,898 | 5,303 | |||||||||
Settlement payments during the year (1) | $ | 46 | $ | 37 | $ | 36.4 | ||||||
______________ | ||||||||||||
-1 | Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC’s attorneys’ fees and expenses and do not reflect amounts received from insurance carriers. | |||||||||||
The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. | ||||||||||||
The ability of Metropolitan Life Insurance Company to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against Metropolitan Life Insurance Company when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. | ||||||||||||
The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. | ||||||||||||
The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. Metropolitan Life Insurance Company’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying Metropolitan Life Insurance Company’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims. | ||||||||||||
Metropolitan Life Insurance Company reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through December 31, 2014. The frequency and severity of claims relating to asbestos have increased, and Metropolitan Life Insurance Company has reflected this in its provisions. Accordingly, Metropolitan Life Insurance Company increased its recorded liability for asbestos related claims to $690 million at December 31, 2014. | ||||||||||||
Regulatory Matters | ||||||||||||
The Company receives and responds to subpoenas or other inquiries from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission (“SEC”) ; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”) seeking a broad range of information. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries. | ||||||||||||
In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida | ||||||||||||
In July 2010, the Environmental Protection Agency (“EPA”) advised Metropolitan Life Insurance Company that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted Metropolitan Life Insurance Company (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. The EPA is requesting payment of an amount under $1 million from Metropolitan Life Insurance Company and such third party for past costs and an additional amount for future environmental testing costs at the Chemform Site. In September 2012, the EPA, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company and the third party have agreed to be responsible for certain environmental testing at the Chemform site. The Company estimates that its costs for the environmental testing will not exceed $100,000. The September 2012 Administrative Order on Consent does not resolve the EPA’s claim for past clean-up costs. The EPA may seek additional costs if the environmental testing identifies issues. The Company estimates that the aggregate cost to resolve this matter will not exceed $1 million. | ||||||||||||
Sales Practices Regulatory Matters. | ||||||||||||
Regulatory authorities in a small number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by Metropolitan Life Insurance Company, NELICO and GALIC. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries. | ||||||||||||
Unclaimed Property Litigation | ||||||||||||
On September 20, 2012, the West Virginia Treasurer filed an action against Metropolitan Life Insurance Company in West Virginia state court (West Virginia ex rel. John D. Perdue v. Metropolitan Life Insurance Company, Circuit Court of Putnam County, Civil Action No. 12-C-295) alleging that Metropolitan Life Insurance Company violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On November 21, 2012 and January 9, 2013, the Treasurer filed substantially identical suits against NELICO and GALIC, respectively. On December 30, 2013, the court granted defendants’ motions to dismiss all of the West Virginia Treasurer’s actions. The Treasurer has appealed the dismissal order. | ||||||||||||
Total Control Accounts Litigation | ||||||||||||
Metropolitan Life Insurance Company is a defendant in lawsuits related to its use of retained asset accounts, known as Total Control Accounts (“TCA”), as a settlement option for death benefits. | ||||||||||||
Keife, et al. v. Metropolitan Life Insurance Company (D. Nev., filed in state court on July 30, 2010 and removed to federal court on September 7, 2010); and Simon v. Metropolitan Life Insurance Company (D. Nev., filed November 3, 2011) | ||||||||||||
These putative class action lawsuits, which have been consolidated, raise breach of contract claims arising from Metropolitan Life Insurance Company’s use of the TCA to pay life insurance benefits under the Federal Employees’ Group Life Insurance program. On March 8, 2013, the court granted Metropolitan Life Insurance Company’s motion for summary judgment. Plaintiffs have appealed that decision to the United States Court of Appeals for the Ninth Circuit. | ||||||||||||
Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) | ||||||||||||
This putative class action lawsuit alleges that Metropolitan Life Insurance Company’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates Metropolitan Life Insurance Company’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company realized on accounts owned by members of the putative class. Metropolitan Life Insurance Company moved to dismiss the complaint and intends to defend this action vigorously. | ||||||||||||
Other Litigation | ||||||||||||
McGuire v. Metropolitan Life Insurance Company (E.D. Mich., filed February 22, 2012) | ||||||||||||
This lawsuit was filed by the fiduciary for the Union Carbide Employees’ Pension Plan and alleges that Metropolitan Life Insurance Company, which issued annuity contracts to fund some of the benefits the Plan provides, engaged in transactions that ERISA prohibits and violated duties under ERISA and federal common law by determining that no dividends were payable with respect to the contracts from and after 1999. On August 8, 2014, the court denied the parties’ motion for summary judgment. The court has not yet set a new trial date. | ||||||||||||
Sun Life Assurance Company of Canada Indemnity Claim | ||||||||||||
In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of Metropolitan Life Insurance Company’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for “market conduct claims” related to certain individual life insurance policies sold by Metropolitan Life Insurance Company and that were transferred to Sun Life. Sun Life had asked that the court require Metropolitan Life Insurance Company to indemnify Sun Life for these claims pursuant to indemnity provisions in the sale agreement for the sale of Metropolitan Life Insurance Company’s Canadian operations entered into in June of 1998. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted Metropolitan Life Insurance Company’s motion for summary judgment. Both parties appealed but subsequently agreed to withdraw the appeal and consider the indemnity claim through arbitration. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto, Fehr v. Sun Life Assurance Co. (Super. Ct., Ontario, September 2010), alleging sales practices claims regarding the same individual policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. An amended class action complaint in that case was served on Sun Life in May 2013, again without naming Metropolitan Life Insurance Company as a party. On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Vancouver, Alamwala v. Sun Life Assurance Co. (Sup. Ct., British Columbia, August 2011), alleging sales practices claims regarding certain of the same policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. | ||||||||||||
C-Mart, Inc. v. Metropolitan Life Ins. Co., et al. (S.D. Fla., January 10, 2013); Cadenasso v. Metropolitan Life Insurance Co., et al. (N.D. Cal., November 26, 2013, subsequently transferred to S.D. Fla. 2013); and Fauley v. Metropolitan Life Insurance Co., et al. (Circuit Court of the 19th Judicial Circuit, Lake County, Ill., July 3, 2014) | ||||||||||||
Plaintiffs filed these lawsuits against defendants, including Metropolitan Life Insurance Company and a former MetLife financial services representative, alleging that the defendants sent unsolicited fax advertisements to plaintiff and others in violation of the Telephone Consumer Protection Act, as amended by the Junk Fax Prevention Act, 47 U.S.C. § 227 (“TCPA”). The C-Mart and Cadenasso cases were voluntarily dismissed. In the Fauley case, the Illinois court certified a nationwide settlement class and approved a settlement under which Metropolitan Life Insurance Company has agreed to pay up to $23 million to resolve claims as to fax ads sent between August 23, 2008 and the date of the preliminary approval in August 2014. | ||||||||||||
Robainas v. Metropolitan Life Ins. Co. and MetLife, Inc. (S.D.N.Y., December 16, 2014); International Association of Machinists and Aerospace Workers District Lodge 15 v. Metropolitan Life Insurance Co. (E.D.N.Y., February 2, 2015) | ||||||||||||
Plaintiffs filed these putative class action lawsuits on behalf of themselves and all persons and entities who, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by Metropolitan Life Insurance Company from 2009 through 2014 (the “Policies”). The complaints allege that Metropolitan Life Insurance Company inadequately disclosed in its statutory annual statements that certain reinsurance transactions with affiliated reinsurance companies were collateralized using “contractual parental guarantees,” and thereby allegedly misrepresented its financial condition and the adequacy of its reserves. The lawsuits seek recovery under Section 4226 of the New York Insurance Law of a statutory penalty in the amount of the premiums paid for the Policies. MetLife intends to defend these actions vigorously. | ||||||||||||
Sales Practices Claims | ||||||||||||
Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys’ fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. | ||||||||||||
Summary | ||||||||||||
Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. | ||||||||||||
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. | ||||||||||||
Insolvency Assessments | ||||||||||||
Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. | ||||||||||||
Assets and liabilities held for insolvency assessments were as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Other Assets: | ||||||||||||
Premium tax offset for future undiscounted assessments | $ | 34 | $ | 46 | ||||||||
Premium tax offsets currently available for paid assessments | 65 | 54 | ||||||||||
$ | 99 | $ | 100 | |||||||||
Other Liabilities: | ||||||||||||
Insolvency assessments | $ | 50 | $ | 67 | ||||||||
Commitments | ||||||||||||
Leases | ||||||||||||
The Company, as lessee, has entered into various lease and sublease agreements for office space, information technology, aircrafts and other equipment. Future minimum gross rental payments relating to these lease arrangements are as follows: | ||||||||||||
Amount | ||||||||||||
(In millions) | ||||||||||||
2015 | $ | 223 | ||||||||||
2016 | 190 | |||||||||||
2017 | 147 | |||||||||||
2018 | 133 | |||||||||||
2019 | 110 | |||||||||||
Thereafter | 701 | |||||||||||
Total | $ | 1,504 | ||||||||||
Total minimum rentals to be received in the future under non-cancelable subleases were $108 million as of December 31, 2014. | ||||||||||||
Mortgage Loan Commitments | ||||||||||||
The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.9 billion and $3.1 billion at December 31, 2014 and 2013, respectively. | ||||||||||||
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||||||||||||
The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $3.6 billion and $3.4 billion at December 31, 2014 and 2013, respectively. | ||||||||||||
Guarantees | ||||||||||||
In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $1.1 billion, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. | ||||||||||||
In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. | ||||||||||||
The Company’s recorded liabilities were $3 million at both December 31, 2014 and 2013, for indemnities, guarantees and commitments. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Results of Operations (Unaudited) | 18. Quarterly Results of Operations (Unaudited) | |||||||||||||||
The unaudited quarterly results of operations for 2014 and 2013 are summarized in the table below: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
(In millions) | ||||||||||||||||
2014 | ||||||||||||||||
Total revenues | $ | 9,037 | $ | 9,252 | $ | 9,857 | $ | 10,585 | ||||||||
Total expenses | $ | 7,889 | $ | 8,210 | $ | 8,017 | $ | 9,224 | ||||||||
Income (loss) from continuing operations, net of income tax | $ | 828 | $ | 749 | $ | 1,303 | $ | 979 | ||||||||
Income (loss) from discontinued operations, net of income tax | $ | (3 | ) | $ | — | $ | — | $ | — | |||||||
Net income (loss) | $ | 825 | $ | 749 | $ | 1,303 | $ | 979 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | $ | 1 | $ | — | $ | (7 | ) | $ | 1 | |||||||
Net income (loss) attributable to Metropolitan Life Insurance Company | $ | 824 | $ | 749 | $ | 1,310 | $ | 978 | ||||||||
2013 | ||||||||||||||||
Total revenues | $ | 8,766 | $ | 8,632 | $ | 8,018 | $ | 9,884 | ||||||||
Total expenses | $ | 7,843 | $ | 7,771 | $ | 7,758 | $ | 9,106 | ||||||||
Income (loss) from continuing operations, net of income tax | $ | 673 | $ | 646 | $ | 242 | $ | 580 | ||||||||
Income (loss) from discontinued operations, net of income tax | $ | — | $ | — | $ | — | $ | 1 | ||||||||
Net income (loss) | $ | 673 | $ | 646 | $ | 242 | $ | 581 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | $ | (1 | ) | $ | 3 | $ | (5 | ) | $ | (4 | ) | |||||
Net income (loss) attributable to Metropolitan Life Insurance Company | $ | 674 | $ | 643 | $ | 247 | $ | 585 | ||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions |
Service Agreements | |
The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $2.1 billion, $2.4 billion and $2.6 billion for the years ended December 31, 2014, 2013 and 2012, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $129 million, $127 million and $108 million for the years ended December 31, 2014, 2013 and 2012, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $177 million, $142 million and $113 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates’ activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $1.8 billion, $1.4 billion and $1.6 billion for the years ended December 31, 2014, 2013 and 2012, respectively, and were reimbursed to the Company by these affiliates. | |
The Company had net payables to affiliates, related to the items discussed above, of $169 million and $327 million at December 31, 2014 and 2013, respectively. | |
See Notes 6, 8, 9 and 12 for additional information on related party transactions. |
Consolidated_Summary_of_Invest
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Consolidated Summary of Investments - Other Than Investments in Related Parties [Abstract] | ||||||||||||
Consolidated Summary of Investments - Other Than Investments in Related Parties | Metropolitan Life Insurance Company | |||||||||||
(A Wholly-Owned Subsidiary of MetLife, Inc.) | ||||||||||||
Schedule I | ||||||||||||
Consolidated Summary of Investments — | ||||||||||||
Other Than Investments in Related Parties | ||||||||||||
December 31, 2014 | ||||||||||||
(In millions) | ||||||||||||
Types of Investments | Cost or Amortized Cost (1) | Estimated Fair Value | Amount at Which Shown on Balance Sheet | |||||||||
Fixed maturity securities: | ||||||||||||
Bonds: | ||||||||||||
U.S. Treasury and agency securities | $ | 34,391 | $ | 39,070 | $ | 39,070 | ||||||
Public utilities | 14,945 | 16,861 | 16,861 | |||||||||
State and political subdivision securities | 5,329 | 6,520 | 6,520 | |||||||||
Foreign government securities | 3,153 | 3,844 | 3,844 | |||||||||
All other corporate bonds | 71,950 | 77,200 | 77,200 | |||||||||
Total bonds | 129,768 | 143,495 | 143,495 | |||||||||
Mortgage-backed and asset-backed securities | 42,804 | 44,302 | 44,302 | |||||||||
Redeemable preferred stock | 1,032 | 1,114 | 1,114 | |||||||||
Total fixed maturity securities | 173,604 | 188,911 | 188,911 | |||||||||
Trading and fair value option securities | 720 | 705 | 705 | |||||||||
Equity securities: | ||||||||||||
Common stock: | ||||||||||||
Industrial, miscellaneous and all other | 1,236 | 1,352 | 1,352 | |||||||||
Non-redeemable preferred stock | 690 | 713 | 713 | |||||||||
Total equity securities | 1,926 | 2,065 | 2,065 | |||||||||
Mortgage loans held-for-investment | 49,059 | 49,059 | ||||||||||
Policy loans | 8,491 | 8,491 | ||||||||||
Real estate and real estate joint ventures | 7,595 | 7,595 | ||||||||||
Real estate acquired in satisfaction of debt | 279 | 279 | ||||||||||
Other limited partnership interests | 4,926 | 4,926 | ||||||||||
Short-term investments | 4,474 | 4,474 | ||||||||||
Other invested assets | 14,209 | 14,209 | ||||||||||
Total investments | $ | 265,283 | $ | 280,714 | ||||||||
______________ | ||||||||||||
-1 | The Company’s trading and fair value option securities portfolio is mainly comprised of fixed maturity and equity securities, including mutual funds and, to a lesser extent, short-term investments and cash and cash equivalents. Cost or amortized cost for fixed maturity securities and mortgage loans held-for-investment represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts; for equity securities, cost represents original cost reduced by impairments from other-than-temporary declines in estimated fair value; for real estate, cost represents original cost reduced by impairments and adjusted for valuation allowances and depreciation; for real estate joint ventures and other limited partnership interests, cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions. |
Consolidated_Supplementary_Ins
Consolidated Supplementary Insurance Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | |||||||||||||||||||||||||
Consolidated Supplementary Insurance Information | Metropolitan Life Insurance Company | ||||||||||||||||||||||||
(A Wholly-Owned Subsidiary of MetLife, Inc.) | |||||||||||||||||||||||||
Schedule III | |||||||||||||||||||||||||
Consolidated Supplementary Insurance Information | |||||||||||||||||||||||||
December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Segment | DAC | Future Policy Benefits, | Policyholder | Policyholder | Unearned | Unearned | |||||||||||||||||||
and | Other Policy-Related | Account | Dividends | Premiums (1), (2) | Revenue (1) | ||||||||||||||||||||
VOBA | Balances and | Balances | Payable | ||||||||||||||||||||||
Policyholder Dividend | |||||||||||||||||||||||||
Obligation | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Retail | $ | 5,544 | $ | 64,965 | $ | 30,058 | $ | 615 | $ | 35 | $ | 527 | |||||||||||||
Group, Voluntary & Worksite Benefits | 324 | 20,500 | 8,305 | — | 321 | — | |||||||||||||||||||
Corporate Benefit Funding | 106 | 40,414 | 57,539 | — | — | 41 | |||||||||||||||||||
Corporate & Other | 1 | 518 | — | — | — | — | |||||||||||||||||||
Total | $ | 5,975 | $ | 126,397 | $ | 95,902 | $ | 615 | $ | 356 | $ | 568 | |||||||||||||
2013 | |||||||||||||||||||||||||
Retail | $ | 5,990 | $ | 62,912 | $ | 30,434 | $ | 601 | $ | 36 | $ | 507 | |||||||||||||
Group, Voluntary & Worksite Benefits | 333 | 19,460 | 8,575 | — | 236 | — | |||||||||||||||||||
Corporate Benefit Funding | 93 | 36,452 | 53,489 | — | — | 31 | |||||||||||||||||||
Corporate & Other | — | 581 | — | — | 1 | — | |||||||||||||||||||
Total | $ | 6,416 | $ | 119,405 | $ | 92,498 | $ | 601 | $ | 273 | $ | 538 | |||||||||||||
2012 | |||||||||||||||||||||||||
Retail | $ | 5,407 | $ | 64,757 | $ | 31,393 | $ | 610 | $ | 36 | $ | 539 | |||||||||||||
Group, Voluntary & Worksite Benefits | 337 | 19,599 | 8,918 | — | 248 | — | |||||||||||||||||||
Corporate Benefit Funding | 88 | 38,645 | 54,406 | — | — | 38 | |||||||||||||||||||
Corporate & Other | — | 476 | (1 | ) | — | — | — | ||||||||||||||||||
Total | $ | 5,832 | $ | 123,477 | $ | 94,716 | $ | 610 | $ | 284 | $ | 577 | |||||||||||||
______________ | |||||||||||||||||||||||||
-1 | Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column. | ||||||||||||||||||||||||
-2 | Includes premiums received in advance. | ||||||||||||||||||||||||
Metropolitan Life Insurance Company | |||||||||||||||||||||||||
(A Wholly-Owned Subsidiary of MetLife, Inc.) | |||||||||||||||||||||||||
Schedule III | |||||||||||||||||||||||||
Consolidated Supplementary Insurance Information — (Continued) | |||||||||||||||||||||||||
December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Segment | Premiums and Universal | Net | Policyholder | Amortization of | Other | ||||||||||||||||||||
Life | Investment | Benefits and | DAC and | Operating | |||||||||||||||||||||
and Investment-Type | Income | Claims and | VOBA | Expenses (1) | |||||||||||||||||||||
Product Policy Fees | Interest Credited | Charged to | |||||||||||||||||||||||
to Policyholder | Other | ||||||||||||||||||||||||
Account Balances | Expenses | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Retail | $ | 5,640 | $ | 5,101 | $ | 6,170 | $ | 652 | $ | 2,666 | |||||||||||||||
Group, Voluntary & Worksite Benefits | 15,097 | 1,616 | 13,977 | 26 | 2,121 | ||||||||||||||||||||
Corporate Benefit Funding | 2,985 | 4,895 | 5,805 | 17 | 472 | ||||||||||||||||||||
Corporate & Other | 128 | 281 | 77 | — | 1,357 | ||||||||||||||||||||
Total | $ | 23,850 | $ | 11,893 | $ | 26,029 | $ | 695 | $ | 6,616 | |||||||||||||||
2013 | |||||||||||||||||||||||||
Retail | $ | 5,456 | $ | 5,067 | $ | 6,059 | $ | 217 | $ | 2,971 | |||||||||||||||
Group, Voluntary & Worksite Benefits | 14,420 | 1,618 | 13,346 | 25 | 1,970 | ||||||||||||||||||||
Corporate Benefit Funding | 2,886 | 4,680 | 5,813 | 19 | 474 | ||||||||||||||||||||
Corporate & Other | 76 | 420 | 67 | — | 1,517 | ||||||||||||||||||||
Total | $ | 22,838 | $ | 11,785 | $ | 25,285 | $ | 261 | $ | 6,932 | |||||||||||||||
2012 | |||||||||||||||||||||||||
Retail | $ | 5,379 | $ | 5,113 | $ | 6,121 | $ | 948 | $ | 3,067 | |||||||||||||||
Group, Voluntary & Worksite Benefits | 13,937 | 1,540 | 12,747 | 29 | 1,878 | ||||||||||||||||||||
Corporate Benefit Funding | 2,802 | 4,636 | 5,792 | 12 | 421 | ||||||||||||||||||||
Corporate & Other | 1 | 563 | (1 | ) | 2 | 1,332 | |||||||||||||||||||
Total | $ | 22,119 | $ | 11,852 | $ | 24,659 | $ | 991 | $ | 6,698 | |||||||||||||||
______________ | |||||||||||||||||||||||||
-1 | Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses. |
Consolidated_Reinsurance
Consolidated Reinsurance | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ||||||||||||||||||||
Consolidated Reinsurance | Metropolitan Life Insurance Company | |||||||||||||||||||
(A Wholly-Owned Subsidiary of MetLife, Inc.) | ||||||||||||||||||||
Schedule IV | ||||||||||||||||||||
Consolidated Reinsurance | ||||||||||||||||||||
December 31, 2014, 2013 and 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Gross Amount | Ceded | Assumed | Net Amount | % Amount Assumed to Net | ||||||||||||||||
2014 | ||||||||||||||||||||
Life insurance in-force | $ | 2,935,363 | $ | 372,886 | $ | 830,980 | $ | 3,393,457 | 24.5 | % | ||||||||||
Insurance premium | ||||||||||||||||||||
Life insurance (1) | $ | 14,135 | $ | 1,159 | $ | 1,630 | $ | 14,606 | 11.2 | % | ||||||||||
Accident and health insurance | 6,828 | 93 | 43 | 6,778 | 0.6 | % | ||||||||||||||
Total insurance premium | $ | 20,963 | $ | 1,252 | $ | 1,673 | $ | 21,384 | 7.8 | % | ||||||||||
2013 | ||||||||||||||||||||
Life insurance in-force | $ | 2,940,853 | $ | 401,576 | $ | 844,946 | $ | 3,384,223 | 25 | % | ||||||||||
Insurance premium | ||||||||||||||||||||
Life insurance (1) | $ | 13,820 | $ | 1,187 | $ | 1,423 | $ | 14,056 | 10.1 | % | ||||||||||
Accident and health insurance | 6,470 | 97 | 46 | 6,419 | 0.7 | % | ||||||||||||||
Total insurance premium | $ | 20,290 | $ | 1,284 | $ | 1,469 | $ | 20,475 | 7.2 | % | ||||||||||
2012 | ||||||||||||||||||||
Life insurance in-force | $ | 2,914,815 | $ | 417,026 | $ | 785,391 | $ | 3,283,180 | 23.9 | % | ||||||||||
Insurance premium | ||||||||||||||||||||
Life insurance (1) | $ | 18,982 | $ | 756 | $ | 794 | $ | 19,020 | 4.2 | % | ||||||||||
Accident and health insurance | 839 | 535 | 556 | 860 | 64.7 | % | ||||||||||||||
Total insurance premium | $ | 19,821 | $ | 1,291 | $ | 1,350 | $ | 19,880 | 6.8 | % | ||||||||||
______________ | ||||||||||||||||||||
-1 | Includes annuities. | |||||||||||||||||||
For the year ended December 31, 2014, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $23.9 billion and $277.9 billion, respectively, and life insurance premiums of $36 million and $681 million, respectively. For the year ended December 31, 2013, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $26.1 billion and $259.6 billion, respectively, and life insurance premiums of $45 million and $451 million, respectively. For the year ended December 31, 2012, reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $27.4 billion and $230.6 billion, respectively, and life insurance premiums of $54 million and $319 million, respectively. |
Business_Basis_of_Presentation1
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates. | |||||
Consolidation of Subsidiaries | The accompanying consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. | |||||
Redeemable Noncontrolling Interests | ||||||
Redeemable noncontrolling interests associated with certain joint ventures and partially-owned consolidated subsidiaries are reported in the temporary section of the balance sheet. | ||||||
Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. | ||||||
Discontinued Operations | Discontinued Operations | |||||
The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. Effective January 1, 2014, the Company early adopted new guidance regarding reporting of discontinued operations for disposals or classifications as held-for-sale that have not been previously reported in the consolidated financial statements. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. | ||||||
Separate Accounts | Separate Accounts | |||||
Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: | ||||||
• | such separate accounts are legally recognized; | |||||
• | assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities; | |||||
• | investments are directed by the contractholder; and | |||||
• | all investment performance, net of contract fees and assessments, is passed through to the contractholder. | |||||
The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the statements of operations. Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. | ||||||
The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees in the statements of operations. | ||||||
Future Policy Benefit Liabilities and Policyholder Account Balances | Future Policy Benefit Liabilities and Policyholder Account Balances | |||||
The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality, morbidity and interest rates are “locked in” upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. | ||||||
Premium deficiency reserves may also be established for short duration contracts to provide for expected future losses. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short duration contracts. | ||||||
Liabilities for universal and variable life secondary guarantees and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondary guarantee and paid-up guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs (“DAC”), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor’s Ratings Services (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. | ||||||
The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. | ||||||
Policyholder account balances (“PABs”) relate to contract or contract features where the Company has no significant insurance risk. | ||||||
PABs are equal to: (i) policy account values, which consist of an accumulation of gross premium payments (ii) credited interest, ranging from 1% to 13%, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations. | ||||||
Future policy benefits are measured as follows: | ||||||
Product Type: | Measurement Assumptions: | |||||
Participating life | Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. | |||||
Nonparticipating life | Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11%. | |||||
Individual and group | Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11%. | |||||
traditional fixed annuities | ||||||
after annuitization | ||||||
Non-medical health | The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. | |||||
insurance | ||||||
Disabled lives | Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 3% to 8%. | |||||
Variable Annuity Guaranteed Minimum Benefits | The Company issues directly and assumes through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. | |||||
Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). | ||||||
Guarantees accounted for as embedded derivatives in PABs include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. | ||||||
The Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of GMWBs and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in PABs and are further discussed in Note 9. Guarantees accounted for as insurance liabilities include: | ||||||
Guarantee: | Measurement Assumptions: | |||||
GMDBs | Ÿ | A return of purchase payment upon death even if the account value is reduced to zero. | Ÿ | Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. | ||
Ÿ | An enhanced death benefit may be available for an additional fee. | Ÿ | Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. | |||
Ÿ | Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. | |||||
Ÿ | Benefit assumptions are based on the average benefits payable over a range of scenarios. | |||||
GMIBs | Ÿ | After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. | Ÿ | Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. | ||
Ÿ | Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. | Ÿ | Assumptions are consistent with those used for estimating GMDB liabilities. | |||
Ÿ | Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. | |||||
GMWBs | Ÿ | A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. | Ÿ | Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. | ||
Ÿ | Certain contracts include guaranteed withdrawals that are life contingent. | |||||
The Company also issues annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize (“two tier annuities”). These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. | ||||||
Embedded Derivatives | ||||||
Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and those related to ceded funds withheld on reinsurance. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. | ||||||
The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within PABs on the consolidated balance sheets. | ||||||
The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. | ||||||
Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. | ||||||
The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife, Inc. | ||||||
Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. | ||||||
The Company ceded the risk associated with certain of the GMIBs, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. | ||||||
Other Policy-Related Balances | Other Policy-Related Balances | |||||
Other policy-related balances include policy and contract claims, unearned revenue liabilities, premiums received in advance, policyholder dividends due and unpaid and policyholder dividends left on deposit. | ||||||
The liability for policy and contract claims generally relates to incurred but not reported death, disability, long-term care (“LTC”) and dental claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. | ||||||
The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits and margins, similar to DAC as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. | ||||||
The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance and applies the cash received to premiums when due. | ||||||
Recognition of Insurance Revenues and Deposits | Recognition of Insurance Revenues and Deposits | |||||
Premiums related to traditional life and annuity policies with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. | ||||||
Premiums related to non-medical health and disability contracts are recognized on a pro rata basis over the applicable contract term. | ||||||
Deposits related to universal life-type and investment-type products are credited to PABs. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related PABs. | ||||||
Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. | ||||||
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | |||||
The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: | ||||||
• | incremental direct costs of contract acquisition, such as commissions; | |||||
• | the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and | |||||
• | other essential direct costs that would not have been incurred had a policy not been acquired or renewed. | |||||
All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. | ||||||
Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. | ||||||
DAC and VOBA are amortized as follows: | ||||||
Products: | In proportion to the following over estimated lives of the contracts: | |||||
• | Nonparticipating and non-dividend-paying traditional contracts: | Historic actual and expected future gross premiums. | ||||
• | Term insurance | |||||
• | Nonparticipating whole life insurance | |||||
• | Traditional group life insurance | |||||
• | Non-medical health insurance | |||||
• | Participating, dividend-paying traditional contracts | Actual and expected future gross margins. | ||||
• | Fixed and variable universal life contracts | Actual and expected future gross profits. | ||||
• | Fixed and variable deferred annuity contracts | |||||
See Note 5 for additional information on DAC and VOBA amortization. | ||||||
The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated in the financial statements for reporting purposes. | ||||||
Nonparticipating and Non-Dividend-Paying Traditional Contracts | ||||||
The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the historic actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. | ||||||
Participating, Dividend-Paying Traditional Contracts | ||||||
The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7. Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. | ||||||
Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts | ||||||
The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. | ||||||
Factors Impacting Amortization | ||||||
Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. | ||||||
The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. | ||||||
Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. | ||||||
Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. | ||||||
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles | |||||
The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: | ||||||
• | incremental direct costs of contract acquisition, such as commissions; | |||||
• | the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and | |||||
• | other essential direct costs that would not have been incurred had a policy not been acquired or renewed. | |||||
All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. | ||||||
Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. | ||||||
DAC and VOBA are amortized as follows: | ||||||
Products: | In proportion to the following over estimated lives of the contracts: | |||||
• | Nonparticipating and non-dividend-paying traditional contracts: | Historic actual and expected future gross premiums. | ||||
• | Term insurance | |||||
• | Nonparticipating whole life insurance | |||||
• | Traditional group life insurance | |||||
• | Non-medical health insurance | |||||
• | Participating, dividend-paying traditional contracts | Actual and expected future gross margins. | ||||
• | Fixed and variable universal life contracts | Actual and expected future gross profits. | ||||
• | Fixed and variable deferred annuity contracts | |||||
See Note 5 for additional information on DAC and VOBA amortization. | ||||||
The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated in the financial statements for reporting purposes. | ||||||
Nonparticipating and Non-Dividend-Paying Traditional Contracts | ||||||
The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the historic actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. | ||||||
Participating, Dividend-Paying Traditional Contracts | ||||||
The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7. Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. | ||||||
Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts | ||||||
The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. | ||||||
Factors Impacting Amortization | ||||||
Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. | ||||||
The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. | ||||||
Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. | ||||||
Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. | ||||||
Deferred Sales Inducements | The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset. | |||||
Value of Distribution Agreements and Customer Relationships Acquired | Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired (“VOCRA”) is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired. | |||||
Reinsurance | Reinsurance | |||||
For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. | ||||||
For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. | ||||||
For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned premiums are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method. | ||||||
Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. | ||||||
The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. | ||||||
Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). | ||||||
If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Certain assumed GMWB, GMAB and GMIB are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). | ||||||
Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8. | ||||||
The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated and unaffiliated companies. | ||||||
Investments | Investments | |||||
Net Investment Income and Net Investment Gains (Losses) | ||||||
Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. | ||||||
Fixed Maturity and Equity Securities | ||||||
The majority of the Company’s fixed maturity and equity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. | ||||||
Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recognized when declared. | ||||||
The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 8 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” | ||||||
For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. | ||||||
With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security’s cost and its estimated fair value. | ||||||
Trading and Fair Value Option Securities | ||||||
Trading and fair value option securities are stated at estimated fair value and include investments that are actively purchased and sold (“Actively Traded Securities”) and investments for which the fair value option (“FVO”) has been elected (“FVO Securities”). | ||||||
Actively Traded Securities principally include fixed maturity securities and short sale agreement liabilities, which are included in other liabilities. | ||||||
Changes in estimated fair value of these securities are included in net investment income, except for certain securities included in FVO Securities where changes are included in net investment gains (losses). | ||||||
Mortgage Loans | ||||||
The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural, and residential. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 8. | ||||||
Mortgage Loans Held-For-Investment | ||||||
Mortgage loans held-for-investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. | ||||||
Also included in mortgage loans held-for-investment are residential mortgage loans for which the FVO was elected. These mortgage loans are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. | ||||||
Mortgage Loans Held-For-Sale | ||||||
Mortgage loans held-for-sale that were previously designated as held-for-investment and mortgage loans originated with the intent to sell for which FVO was not elected, are stated at the lower of amortized cost or estimated fair value. | ||||||
Policy Loans | ||||||
Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. | ||||||
Real Estate | ||||||
Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years). Rental income is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks. | ||||||
Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. | ||||||
Real Estate Joint Ventures and Other Limited Partnership Interests | ||||||
The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. | ||||||
The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. The Company recognizes distributions on cost method investments as earned or received. Because of the nature and structure of these cost method investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards. | ||||||
The Company routinely evaluates its equity method and cost method investments for impairment. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value (“NAV”). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. | ||||||
Short-term Investments | ||||||
Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. | ||||||
Other Invested Assets | ||||||
Other invested assets consist principally of the following: | ||||||
• | Freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. | |||||
• | Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. | |||||
• | Loans to affiliates which are stated at unpaid principal balance and adjusted for any unamortized premium or discount. | |||||
• | Leveraged leases which are recorded net of non-recourse debt. Income is recognized by applying the leveraged lease’s estimated rate of return to the net investment in the lease. The Company regularly reviews residual values for impairment. | |||||
• | Direct financing leases gross investment is equal to the minimum lease payments plus the unguaranteed residual value. Income is recorded by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews lease receivables for impairment. | |||||
• | Funds withheld which represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments. | |||||
• | Investments in operating joint ventures that engage in insurance underwriting activities and are accounted for under the equity method. | |||||
Securities Lending Program | ||||||
Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the Company’s financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. | ||||||
Investment Risks and Uncertainties | ||||||
Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. | ||||||
The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. | ||||||
The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”), certain structured investment transactions and trading and FVO securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. | ||||||
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, ABS and CMBS are shown separately, as they are not due at a single maturity. | ||||||
Amortization of premium and accretion of discount on structured securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and ABS are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive mortgage-backed and ABS and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and ABS, the effective yield is recalculated on a retrospective basis. | ||||||
Maturities of Fixed Maturity Securities | ||||||
Evaluation and Measurement Methodologies | ||||||
Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to structured securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. | ||||||
The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: | ||||||
• | The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. | |||||
• | When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. | |||||
• | Additional considerations are made when assessing the unique features that apply to certain structured securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. | |||||
• | When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. | |||||
With respect to securities that have attributes of debt and equity (perpetual hybrid securities), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security’s cost and its estimated fair value with a corresponding charge to earnings. | ||||||
The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. | ||||||
In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. | ||||||
Valuation Allowance Methodology | ||||||
Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. | ||||||
Commercial and Agricultural Mortgage Loan Portfolio Segments | ||||||
The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. | ||||||
All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. | ||||||
For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis, with a portion of the loan portfolio updated each quarter. | ||||||
For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. | ||||||
Residential Mortgage Loan Portfolio Segment | ||||||
The Company’s residential mortgage loan portfolio is comprised primarily of closed end, amortizing residential mortgage loans. For evaluations of residential mortgage loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, when appropriate, for differences from market conditions and the Company’s historical experience. In contrast to the commercial and agricultural mortgage loan portfolios, residential mortgage loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuation allowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique to the residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential mortgage loans when they have been restructured and are established using the methodology described above for all loan portfolio segments. | ||||||
For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in non-accrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. | ||||||
Mortgage Loans Modified in a Troubled Debt Restructuring | ||||||
For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance. | ||||||
Past Due and Interest Accrual Status of Mortgage Loans | ||||||
The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. | ||||||
For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. | ||||||
Leveraged and Direct Financing Leases | ||||||
Purchased Credit Impaired Investments | ||||||
Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired (“PCI”) investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. | ||||||
Variable Interest Entities | ||||||
The Company has invested in certain structured transactions (including consolidated securitization entities (“CSEs”)) that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. | ||||||
The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. | ||||||
Derivatives | Derivatives | |||||
Freestanding Derivatives | ||||||
Freestanding derivatives are carried in the Company’s balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. | ||||||
Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. | ||||||
If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: | ||||||
Statement of Operations Presentation: | Derivative: | |||||
Policyholder benefits and claims | • | Economic hedges of variable annuity guarantees included in future policy benefits | ||||
Net investment income | • | Economic hedges of equity method investments in joint ventures | ||||
• | All derivatives held in relation to trading portfolios | |||||
Hedge Accounting | ||||||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: | ||||||
• | Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. | |||||
• | Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). | |||||
The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of operations within interest income or interest expense to match the location of the hedged item. | ||||||
In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. | ||||||
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. | ||||||
When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried in the balance sheets at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statements of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. | ||||||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried in the balance sheets at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). | ||||||
In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value in the balance sheets, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). | ||||||
Embedded Derivatives | ||||||
The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: | ||||||
• | the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; | |||||
• | the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and | |||||
• | a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. | |||||
Such embedded derivatives are carried in the balance sheets at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. | ||||||
Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. | ||||||
The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. | ||||||
The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate forwards to hedge forecasted fixed-rate borrowings. | ||||||
The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. | ||||||
Fair Value | Fair Value | |||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. | ||||||
Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of assets and liabilities. | ||||||
When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: | ||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. | |||||
Level 2 | Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3 | Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. | |||||
Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. | ||||||
Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. | ||||||
Goodwill | Goodwill | |||||
Goodwill, which is included in other assets, represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter of each year based upon data as of the close of the second quarter. Goodwill associated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairment event. | ||||||
The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, there may be an indication of impairment. In such instances, the implied fair value of the goodwill is determined in the same manner as the amount of goodwill that would be determined in a business combination. The excess of the carrying value of goodwill over the implied fair value of goodwill would be recognized as an impairment and recorded as a charge against net income. | ||||||
On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have an impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. | ||||||
Goodwill, which is included in other assets, is the excess of cost over the estimated fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. The Company tests goodwill for impairment by either performing a qualitative assessment or a two-step quantitative test. The qualitative assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect not to perform the qualitative assessment for some or all of its reporting units and perform a two-step quantitative impairment test. In performing the two-step quantitative impairment test, the Company may use a market multiple valuation approach and a discounted cash flow valuation approach. For reporting units which are particularly sensitive to market assumptions, the Company may use additional valuation methodologies to estimate the reporting units’ fair values. | ||||||
The market multiple valuation approach utilizes market multiples of companies with similar businesses and the projected operating earnings of the reporting unit. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that the Company believes is appropriate for the respective reporting unit. | ||||||
The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of the Company’s reporting units could result in goodwill impairments in future periods which could materially adversely affect the Company’s results of operations or financial position. | ||||||
Employee Benefit Plans | Employee Benefit Plans | |||||
The Company sponsors and administers various qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering eligible employees and sales representatives who meet specified eligibility requirements of the sponsor and its participating affiliates. A December 31 measurement date is used for all of the Company’s defined benefit pension and other postretirement benefit plans. | ||||||
The Company recognizes the funded status of the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits for each of its plans. The Company recognizes an expense for differences between actual experience and estimates over the average future service period of participants. The actuarial gains (losses), prior service costs and credits not yet included in net periodic benefit costs are charged to accumulated OCI (“AOCI”), net of income tax. | ||||||
The Company also sponsors defined contribution plans for substantially all U.S. employees under which a portion of participant contributions is matched. Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions. As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized in the balance sheets. | ||||||
The Company sponsors and administers various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits based upon years of credited service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as earnings credits, determined annually based upon the average annual rate of interest on 30-year U.S. Treasury securities, for each account balance. At December 31, 2014, the majority of active participants were accruing benefits under the cash balance formula; however, 89% of the Company’s obligations result from benefits calculated with the traditional formula. The non-qualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated a proportionate share of net expense related to the plans, as well as contributions made to the plans. | ||||||
The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Employees of the Company who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for the Company may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. | ||||||
Net periodic benefit costs are determined using management estimates and actuarial assumptions to derive service costs, interest costs and expected return on plan assets for a particular year. Net periodic benefit costs also includes the applicable amortization of net actuarial (gains) losses and amortization of any prior service costs (credit). | ||||||
The obligations and expenses associated with these plans require an extensive use of assumptions such as the discount rate, expected rate of return on plan assets, rate of future compensation increases, healthcare cost trend rates, as well as assumptions regarding participant demographics such as rate and age of retirements, withdrawal rates and mortality. Management, in consultation with its external consulting actuarial firms, determines these assumptions based upon a variety of factors such as historical performance of the plan and its assets, currently available market and industry data and expected benefit payout streams. The assumptions used may differ materially from actual results due to, among other factors, changing market and economic conditions and changes in participant demographics. These differences may have a significant effect on the Company’s consolidated financial statements and liquidity. | ||||||
Net periodic pension costs and net periodic other postretirement benefit plan costs are comprised of the following: | ||||||
• | Service Costs — Service costs are the increase in the projected (expected) PBO resulting from benefits payable to employees of the Company on service rendered during the current year. | |||||
• | Interest Costs — Interest costs are the time value adjustment on the projected (expected) PBO at the end of each year. | |||||
• | Settlement and Curtailment Costs — The aggregate amount of net (gains) losses recognized in net periodic benefit costs is due to settlements and curtailments. Settlements result from actions that relieve/eliminate the plan’s responsibility for benefit obligations or risks associated with the obligations or assets used for the settlement. Curtailments result from an event that significantly reduces/eliminates plan participants’ expected years of future services or benefit accruals. | |||||
• | Expected Return on Plan Assets — Expected return on plan assets is the assumed return earned by the accumulated pension and other postretirement fund assets in a particular year. | |||||
• | Amortization of Net Actuarial (Gains) Losses — Actuarial gains and losses result from differences between the actual experience and the expected experience on pension and other postretirement plan assets or projected (expected) PBO during a particular period. These gains and losses are accumulated and, to the extent they exceed 10% of the greater of the PBO or the fair value of plan assets, the excess is amortized into pension and other postretirement benefit costs over the expected service years of the employees. | |||||
• | Amortization of Prior Service Costs (Credit) — These costs relate to the recognition of increases or decreases in pension and other postretirement benefit obligation due to amendments in plans or initiation of new plans. These increases or decreases in obligation are recognized in AOCI at the time of the amendment. These costs are then amortized to pension and other postretirement benefit costs over the expected service years of the employees affected by the change. | |||||
Income Tax | Income Tax | |||||
Metropolitan Life Insurance Company and its includable subsidiaries join with MetLife, Inc. and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to Metropolitan Life Insurance Company and its subsidiaries under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife, Inc, has elected the “percentage method” (and 100% under such method) of reimbursing companies for tax attributes, e.g., net operating losses. As a result, 100% of tax attributes are reimbursed by MetLife, Inc. to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes. On an annual basis, each of the profitable subsidiaries pays to MetLife, Inc. the federal income tax which it would have paid based upon that year’s taxable income. If Metropolitan Life Insurance Company or its includable subsidiaries has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by Metropolitan Life Insurance Company and its includable subsidiaries when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if Metropolitan Life Insurance Company or its includable subsidiaries would not have realized the attributes on a stand-alone basis under a “wait and see” method. | ||||||
The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. | ||||||
Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. | ||||||
The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: | ||||||
• | the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; | |||||
• | the jurisdiction in which the deferred tax asset was generated; | |||||
• | the length of time that carryforward can be utilized in the various taxing jurisdiction; | |||||
• | future taxable income exclusive of reversing temporary differences and carryforwards; | |||||
• | future reversals of existing taxable temporary differences; | |||||
• | taxable income in prior carryback years; and | |||||
• | tax planning strategies. | |||||
The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes could significantly affect the amounts reported in the financial statements in the year these changes occur. | ||||||
The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. | ||||||
The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax. | ||||||
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. | ||||||
Litigation Contingencies | Litigation Contingencies | |||||
The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 17, legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company’s financial statements. | ||||||
Stock-based Compensation | Stock-Based Compensation | |||||
Stock-based compensation recognized in the Company’s consolidated results of operations is allocated from MetLife, Inc. The accounting policies described below represent those that MetLife, Inc. applies in determining such allocated expenses. | ||||||
MetLife, Inc. grants certain employees and directors stock-based compensation awards under various plans that are subject to specific vesting conditions. With the exception of performance shares granted in 2014 and 2013 which are re-measured quarterly, the cost of all stock-based transactions is measured at fair value at grant date and recognized over the period during which a grantee is required to provide services in exchange for the award. Although the terms of MetLife, Inc.’s stock-based plans do not accelerate vesting upon retirement, or the attainment of retirement eligibility, the requisite service period subsequent to attaining such eligibility is considered nonsubstantive. Accordingly, MetLife, Inc. recognizes compensation expense related to stock-based awards over the shorter of the requisite service period or the period to attainment of retirement eligibility. An estimation of future forfeitures of stock-based awards is incorporated into the determination of compensation expense when recognizing expense over the requisite service period. | ||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||
The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. | ||||||
Property, Equipment, Leasehold Improvements and Computer Software | Property, Equipment, Leasehold Improvements and Computer Software | |||||
Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life is generally 40 years for company occupied real estate property, from one to 25 years for leasehold improvements, and from three to seven years for all other property and equipment. The cost basis of the property, equipment and leasehold improvements was $1.3 billion and $1.2 billion at December 31, 2014 and 2013, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $721 million and $667 million at December 31, 2014 and 2013, respectively. Related depreciation and amortization expense was $123 million, $115 million and $121 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four-year period using the straight-line method. The cost basis of computer software was $1.2 billion and $1.0 billion at December 31, 2014 and 2013, respectively. Accumulated amortization of capitalized software was $882 million and $739 million at December 31, 2014 and 2013, respectively. Related amortization expense was $145 million, $144 million and $143 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
Other Revenues | Other Revenues | |||||
Other revenues include, in addition to items described elsewhere herein, advisory fees, broker-dealer commissions and fees, administrative service fees, and changes in account value relating to corporate-owned life insurance (“COLI”). Such fees and commissions are recognized in the period in which services are performed. Under certain COLI contracts, if the Company reports certain unlikely adverse results in its financial statements, withdrawals would not be immediately available and would be subject to market value adjustment, which could result in a reduction of the account value. | ||||||
Policyholder Dividends | Policyholder Dividends | |||||
Policyholder dividends are approved annually by Metropolitan Life Insurance Company and its insurance subsidiaries’ boards of directors. The aggregate amount of policyholder dividends is related to actual interest, mortality, morbidity and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by Metropolitan Life Insurance Company and its insurance subsidiaries. | ||||||
Foreign Currency | Foreign Currency | |||||
Assets, liabilities and operations of foreign affiliates and subsidiaries are recorded based on the functional currency of each entity. The determination of the functional currency is made based on the appropriate economic and management indicators. The local currencies of foreign operations are the functional currencies. Assets and liabilities of foreign affiliates and subsidiaries are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and income and expense accounts are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. | ||||||
Closed Block | On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience. | |||||
The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years. | ||||||
The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess of the actual cumulative earnings of the closed block over the expected cumulative earnings to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings. | ||||||
Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. |
Business_Basis_of_Presentation2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Reclassification | The following table presents such reclassifications, all within cash flows from operating activities, in the consolidated statements of cash flows: | |||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
(Gains) losses on investments and from sales of businesses, net | $ | (1,161 | ) | $ | 460 | |||
Other, net | $ | 102 | $ | 101 | ||||
(Gains) losses on derivatives, net | $ | 1,059 | $ | (561 | ) | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Reporting Information, by Segment | |||||||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | Retail | Group, | Corporate | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||
Voluntary | Benefit | & Other | Consolidated | ||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Premiums | $ | 4,081 | $ | 14,381 | $ | 2,794 | $ | 128 | $ | 21,384 | $ | — | $ | 21,384 | |||||||||||||||
Universal life and investment-type product policy fees | 1,505 | 716 | 191 | — | 2,412 | 54 | 2,466 | ||||||||||||||||||||||
Net investment income | 5,402 | 1,783 | 4,892 | 288 | 12,365 | (472 | ) | 11,893 | |||||||||||||||||||||
Other revenues | 430 | 415 | 287 | 676 | 1,808 | — | 1,808 | ||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 143 | 143 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | 1,037 | 1,037 | ||||||||||||||||||||||
Total revenues | 11,418 | 17,295 | 8,164 | 1,092 | 37,969 | 762 | 38,731 | ||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 6,379 | 13,823 | 4,771 | 77 | 25,050 | 45 | 25,095 | ||||||||||||||||||||||
Interest credited to policyholder account balances | 988 | 155 | 1,020 | — | 2,163 | 11 | 2,174 | ||||||||||||||||||||||
Capitalization of DAC | (376 | ) | (17 | ) | (30 | ) | (1 | ) | (424 | ) | — | (424 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 536 | 26 | 17 | — | 579 | 116 | 695 | ||||||||||||||||||||||
Interest expense on debt | 6 | 2 | 10 | 132 | 150 | 1 | 151 | ||||||||||||||||||||||
Other expenses | 1,797 | 2,135 | 492 | 1,231 | 5,655 | (6 | ) | 5,649 | |||||||||||||||||||||
Total expenses | 9,330 | 16,124 | 6,280 | 1,439 | 33,173 | 167 | 33,340 | ||||||||||||||||||||||
Provision for income tax expense (benefit) | 733 | 430 | 659 | (500 | ) | 1,322 | 210 | 1,532 | |||||||||||||||||||||
Operating earnings | $ | 1,355 | $ | 741 | $ | 1,225 | $ | 153 | 3,474 | ||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||
Total revenues | 762 | ||||||||||||||||||||||||||||
Total expenses | (167 | ) | |||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (210 | ) | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 3,859 | $ | 3,859 | |||||||||||||||||||||||||
At December 31, 2014 | Retail | Group, | Corporate | Corporate | Total | ||||||||||||||||||||||||
Voluntary | Benefit | & Other | |||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Total assets | $ | 180,572 | $ | 43,161 | $ | 205,088 | $ | 29,397 | $ | 458,218 | |||||||||||||||||||
Separate account assets | $ | 59,710 | $ | 669 | $ | 78,956 | $ | — | $ | 139,335 | |||||||||||||||||||
Separate account liabilities | $ | 59,710 | $ | 669 | $ | 78,956 | $ | — | $ | 139,335 | |||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Retail | Group, | Corporate | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||
Voluntary | Benefit | & Other | Consolidated | ||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Premiums | $ | 3,992 | $ | 13,732 | $ | 2,675 | $ | 76 | $ | 20,475 | $ | — | $ | 20,475 | |||||||||||||||
Universal life and investment-type product policy fees | 1,397 | 688 | 211 | — | 2,296 | 67 | 2,363 | ||||||||||||||||||||||
Net investment income | 5,385 | 1,790 | 4,611 | 431 | 12,217 | (432 | ) | 11,785 | |||||||||||||||||||||
Other revenues | 328 | 404 | 273 | 694 | 1,699 | — | 1,699 | ||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 48 | 48 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | (1,070 | ) | (1,070 | ) | ||||||||||||||||||||
Total revenues | 11,102 | 16,614 | 7,770 | 1,201 | 36,687 | (1,387 | ) | 35,300 | |||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 6,246 | 13,191 | 4,723 | 67 | 24,227 | 10 | 24,237 | ||||||||||||||||||||||
Interest credited to policyholder account balances | 988 | 156 | 1,092 | — | 2,236 | 17 | 2,253 | ||||||||||||||||||||||
Capitalization of DAC | (517 | ) | (20 | ) | (25 | ) | — | (562 | ) | — | (562 | ) | |||||||||||||||||
Amortization of DAC and VOBA | 447 | 25 | 19 | — | 491 | (230 | ) | 261 | |||||||||||||||||||||
Interest expense on debt | 5 | 1 | 10 | 134 | 150 | 3 | 153 | ||||||||||||||||||||||
Other expenses | 2,280 | 1,988 | 489 | 1,348 | 6,105 | 31 | 6,136 | ||||||||||||||||||||||
Total expenses | 9,449 | 15,341 | 6,308 | 1,549 | 32,647 | (169 | ) | 32,478 | |||||||||||||||||||||
Provision for income tax expense (benefit) | 579 | 446 | 512 | (421 | ) | 1,116 | (435 | ) | 681 | ||||||||||||||||||||
Operating earnings | $ | 1,074 | $ | 827 | $ | 950 | $ | 73 | 2,924 | ||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||
Total revenues | (1,387 | ) | |||||||||||||||||||||||||||
Total expenses | 169 | ||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 435 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,141 | $ | 2,141 | |||||||||||||||||||||||||
At December 31, 2013 | Retail | Group, | Corporate | Corporate | Total | ||||||||||||||||||||||||
Voluntary | Benefit | & Other | |||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Total assets | $ | 174,853 | $ | 41,059 | $ | 188,960 | $ | 27,911 | $ | 432,783 | |||||||||||||||||||
Separate account assets | $ | 59,217 | $ | 644 | $ | 74,935 | $ | — | $ | 134,796 | |||||||||||||||||||
Separate account liabilities | $ | 59,217 | $ | 644 | $ | 74,935 | $ | — | $ | 134,796 | |||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Year Ended December 31, 2012 | Retail | Group, | Corporate | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||
Voluntary | Benefit | & Other | Consolidated | ||||||||||||||||||||||||||
& Worksite Benefits | Funding | ||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Premiums | $ | 3,997 | $ | 13,274 | $ | 2,608 | $ | 1 | $ | 19,880 | $ | — | $ | 19,880 | |||||||||||||||
Universal life and investment-type product policy fees | 1,332 | 663 | 194 | — | 2,189 | 50 | 2,239 | ||||||||||||||||||||||
Net investment income | 5,384 | 1,680 | 4,519 | 554 | 12,137 | (285 | ) | 11,852 | |||||||||||||||||||||
Other revenues | 265 | 398 | 252 | 815 | 1,730 | — | 1,730 | ||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | (330 | ) | (330 | ) | ||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | 675 | 675 | ||||||||||||||||||||||
Total revenues | 10,978 | 16,015 | 7,573 | 1,370 | 35,936 | 110 | 36,046 | ||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 6,294 | 12,580 | 4,552 | (1 | ) | 23,425 | 139 | 23,564 | |||||||||||||||||||||
Interest credited to policyholder account balances | 1,002 | 167 | 1,192 | — | 2,361 | 29 | 2,390 | ||||||||||||||||||||||
Capitalization of DAC | (584 | ) | (24 | ) | (24 | ) | — | (632 | ) | — | (632 | ) | |||||||||||||||||
Amortization of DAC and VOBA | 656 | 29 | 12 | 2 | 699 | 292 | 991 | ||||||||||||||||||||||
Interest expense on debt | 5 | 1 | 9 | 133 | 148 | 4 | 152 | ||||||||||||||||||||||
Other expenses | 2,341 | 1,901 | 438 | 1,196 | 5,876 | 7 | 5,883 | ||||||||||||||||||||||
Total expenses | 9,714 | 14,654 | 6,179 | 1,330 | 31,877 | 471 | 32,348 | ||||||||||||||||||||||
Provision for income tax expense (benefit) | 442 | 477 | 488 | (236 | ) | 1,171 | (116 | ) | 1,055 | ||||||||||||||||||||
Operating earnings | $ | 822 | $ | 884 | $ | 906 | $ | 276 | 2,888 | ||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||
Total revenues | 110 | ||||||||||||||||||||||||||||
Total expenses | (471 | ) | |||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 116 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,643 | $ | 2,643 | |||||||||||||||||||||||||
Premiums, Universal Life and Investment-Type Policy Fees and Other Revenue by Product Groups for Reportable Segment | The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Life insurance | $ | 13,865 | $ | 13,482 | $ | 13,424 | |||||||||||||||||||||||
Accident and health insurance | 7,247 | 6,873 | 6,458 | ||||||||||||||||||||||||||
Annuities | 4,352 | 4,007 | 3,800 | ||||||||||||||||||||||||||
Non-insurance | 194 | 175 | 167 | ||||||||||||||||||||||||||
Total | $ | 25,658 | $ | 24,537 | $ | 23,849 | |||||||||||||||||||||||
Insurance_Tables
Insurance (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||
Insurance Liabilities | Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, PABs and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Retail | $ | 91,868 | $ | 91,575 | ||||||||||||||||
Group, Voluntary & Worksite Benefits | 28,805 | 28,035 | ||||||||||||||||||
Corporate Benefit Funding | 97,953 | 89,941 | ||||||||||||||||||
Corporate & Other | 518 | 581 | ||||||||||||||||||
Total | $ | 219,144 | $ | 210,132 | ||||||||||||||||
Liabilities for Guarantees | Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows: | |||||||||||||||||||
Annuity Contracts | Universal and Variable | |||||||||||||||||||
Life Contracts | ||||||||||||||||||||
GMDBs | GMIBs | Secondary | Paid-Up | Total | ||||||||||||||||
Guarantees | Guarantees | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Direct | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 84 | $ | 158 | $ | 261 | $ | 58 | $ | 561 | ||||||||||
Incurred guaranteed benefits | 31 | 174 | 79 | 10 | 294 | |||||||||||||||
Paid guaranteed benefits | (6 | ) | — | — | — | (6 | ) | |||||||||||||
Balance at December 31, 2012 | 109 | 332 | 340 | 68 | 849 | |||||||||||||||
Incurred guaranteed benefits | 44 | 58 | 77 | 6 | 185 | |||||||||||||||
Paid guaranteed benefits | (5 | ) | — | — | — | (5 | ) | |||||||||||||
Balance at December 31, 2013 | 148 | 390 | 417 | 74 | 1,029 | |||||||||||||||
Incurred guaranteed benefits | 51 | 68 | 124 | 8 | 251 | |||||||||||||||
Paid guaranteed benefits | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 196 | $ | 458 | $ | 541 | $ | 82 | $ | 1,277 | ||||||||||
Ceded | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 62 | $ | 52 | $ | 212 | $ | 41 | $ | 367 | ||||||||||
Incurred guaranteed benefits | 30 | 58 | 53 | 6 | 147 | |||||||||||||||
Paid guaranteed benefits | (6 | ) | — | — | — | (6 | ) | |||||||||||||
Balance at December 31, 2012 | 86 | 110 | 265 | 47 | 508 | |||||||||||||||
Incurred guaranteed benefits | 39 | 14 | 49 | 4 | 106 | |||||||||||||||
Paid guaranteed benefits | (5 | ) | — | — | — | (5 | ) | |||||||||||||
Balance at December 31, 2013 | 120 | 124 | 314 | 51 | 609 | |||||||||||||||
Incurred guaranteed benefits (1) | (80 | ) | (100 | ) | (9 | ) | 6 | (183 | ) | |||||||||||
Paid guaranteed benefits | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 37 | $ | 24 | $ | 305 | $ | 57 | $ | 423 | ||||||||||
Net | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 22 | $ | 106 | $ | 49 | $ | 17 | $ | 194 | ||||||||||
Incurred guaranteed benefits | 1 | 116 | 26 | 4 | 147 | |||||||||||||||
Paid guaranteed benefits | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2012 | 23 | 222 | 75 | 21 | 341 | |||||||||||||||
Incurred guaranteed benefits | 5 | 44 | 28 | 2 | 79 | |||||||||||||||
Paid guaranteed benefits | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2013 | 28 | 266 | 103 | 23 | 420 | |||||||||||||||
Incurred guaranteed benefits | 131 | 168 | 133 | 2 | 434 | |||||||||||||||
Paid guaranteed benefits | — | — | — | — | — | |||||||||||||||
Balance at December 31, 2014 | $ | 159 | $ | 434 | $ | 236 | $ | 25 | $ | 854 | ||||||||||
______________ | ||||||||||||||||||||
-1 | See Note 6. | |||||||||||||||||||
Fund Groupings | Account balances of contracts with insurance guarantees were invested in separate account asset classes as follows at: | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fund Groupings: | ||||||||||||||||||||
Equity | $ | 24,995 | $ | 24,915 | ||||||||||||||||
Balanced | 22,759 | 22,481 | ||||||||||||||||||
Bond | 4,561 | 4,551 | ||||||||||||||||||
Money Market | 150 | 179 | ||||||||||||||||||
Total | $ | 52,465 | $ | 52,126 | ||||||||||||||||
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
In the | At | In the | At | |||||||||||||||||
Event of Death | Annuitization | Event of Death | Annuitization | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Annuity Contracts (1) | ||||||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||||||
Total contract account value | $ | 62,810 | $ | 29,474 | $ | 62,763 | $ | 28,934 | ||||||||||||
Separate account value | $ | 51,077 | $ | 28,347 | $ | 50,700 | $ | 27,738 | ||||||||||||
Net amount at risk | $ | 702 | $ | 244 | $ | 641 | $ | 123 | ||||||||||||
Average attained age of contractholders | 65 years | 63 years | 64 years | 62 years | ||||||||||||||||
Two Tier and Other Annuities | ||||||||||||||||||||
Account value | N/A | $ | 456 | N/A | $ | 397 | ||||||||||||||
Net amount at risk | N/A | $ | 153 | N/A | $ | 123 | ||||||||||||||
Average attained age of contractholders | N/A | 55 years | N/A | 54 years | ||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Secondary | Paid-Up | Secondary | Paid-Up | |||||||||||||||||
Guarantees | Guarantees | Guarantees | Guarantees | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Universal and Variable Life Contracts (1) | ||||||||||||||||||||
Account value (general and separate account) | $ | 8,213 | $ | 1,091 | $ | 7,871 | $ | 1,125 | ||||||||||||
Net amount at risk | $ | 78,758 | $ | 8,164 | $ | 81,888 | $ | 8,701 | ||||||||||||
Average attained age of policyholders | 54 years | 60 years | 53 years | 59 years | ||||||||||||||||
______________ | ||||||||||||||||||||
-1 | The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. | |||||||||||||||||||
Schedule of Federal Home Loan Bank, common stock holdings, by branch of FHLB Bank | Metropolitan Life Insurance Company and General American Life Insurance Company (“GALIC”), a subsidiary, are members of regional banks in the Federal Home Loan Bank (“FHLB”) system (“FHLBanks”). Holdings of common stock of FHLBanks, included in equity securities, were as follows at: | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
FHLB of NY | $ | 661 | $ | 700 | ||||||||||||||||
FHLB of Des Moines | $ | 50 | $ | 50 | ||||||||||||||||
Schedule of liability recorded and collateral pledged for funding agreements | The Company has also entered into funding agreements with FHLBanks and the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in PABs. Information related to such funding agreements was as follows at: | |||||||||||||||||||
Liability | Collateral | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
FHLB of NY (1) | $ | 12,570 | $ | 12,770 | $ | 15,255 | -2 | $ | 14,287 | -2 | ||||||||||
Farmer Mac (3) | $ | 2,550 | $ | 2,550 | $ | 2,932 | $ | 2,929 | ||||||||||||
FHLB of Des Moines (1) | $ | 1,000 | $ | 1,000 | $ | 1,141 | -2 | $ | 1,118 | -2 | ||||||||||
______________ | ||||||||||||||||||||
-1 | Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, such FHLBank’s recovery on the collateral is limited to the amount of the Company’s liability to such FHLBank. | |||||||||||||||||||
-2 | Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. | |||||||||||||||||||
-3 | Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. | |||||||||||||||||||
Liabilities for Unpaid Claims and Claim Expenses | Information regarding the liabilities for unpaid claims and claim expenses relating to group accident and non-medical health policies and contracts, which are reported in future policy benefits and other policy-related balances, was as follows: | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at January 1, | $ | 7,022 | $ | 6,826 | $ | 6,622 | ||||||||||||||
Less: Reinsurance recoverables | 290 | 301 | 324 | |||||||||||||||||
Net balance at January 1, | 6,732 | 6,525 | 6,298 | |||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 5,099 | 4,762 | 4,320 | |||||||||||||||||
Prior years (1) | — | (12 | ) | (42 | ) | |||||||||||||||
Total incurred | 5,099 | 4,750 | 4,278 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | (3,228 | ) | (3,035 | ) | (2,626 | ) | ||||||||||||||
Prior years | (1,579 | ) | (1,508 | ) | (1,425 | ) | ||||||||||||||
Total paid | (4,807 | ) | (4,543 | ) | (4,051 | ) | ||||||||||||||
Net balance at December 31, | 7,024 | 6,732 | 6,525 | |||||||||||||||||
Add: Reinsurance recoverables | 286 | 290 | 301 | |||||||||||||||||
Balance at December 31, | $ | 7,310 | $ | 7,022 | $ | 6,826 | ||||||||||||||
______________ | ||||||||||||||||||||
-1 | During 2014, there were no changes to claims and claim adjustment expenses associated with prior years. During 2013 and 2012, as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years decreased due to a reduction in prior year dental and AD&D claims and improved loss ratio for non-medical health claim liabilities. |
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | ||||||||||||
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
DAC | ||||||||||||
Balance at January 1, | $ | 6,338 | $ | 5,752 | $ | 6,244 | ||||||
Capitalizations | 424 | 562 | 632 | |||||||||
Amortization related to: | ||||||||||||
Net investment gains (losses) and net derivative gains (losses) | (104 | ) | 227 | (270 | ) | |||||||
Other expenses | (583 | ) | (478 | ) | (709 | ) | ||||||
Total amortization | (687 | ) | (251 | ) | (979 | ) | ||||||
Unrealized investment gains (losses) | (170 | ) | 495 | (145 | ) | |||||||
Other (1) | — | (220 | ) | — | ||||||||
Balance at December 31, | 5,905 | 6,338 | 5,752 | |||||||||
VOBA | ||||||||||||
Balance at January 1, | 78 | 80 | 97 | |||||||||
Amortization related to: | ||||||||||||
Other expenses | (8 | ) | (10 | ) | (12 | ) | ||||||
Total amortization | (8 | ) | (10 | ) | (12 | ) | ||||||
Unrealized investment gains (losses) | — | 8 | (5 | ) | ||||||||
Balance at December 31, | 70 | 78 | 80 | |||||||||
Total DAC and VOBA | ||||||||||||
Balance at December 31, | $ | 5,975 | $ | 6,416 | $ | 5,832 | ||||||
______________ | ||||||||||||
-1 | The year ended December 31, 2013 includes ($220) million that was reclassified to DAC from other liabilities. The amounts reclassified relate to affiliated reinsurance agreements accounted for using the deposit method of accounting and represent the DAC amortization on the expense allowances assumed on the agreements from inception. These amounts were previously included in the calculated value of the deposit payable on these agreements and were recorded within other liabilities. | |||||||||||
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
DAC | ||||||||||||
Balance at January 1, | $ | 6,338 | $ | 5,752 | $ | 6,244 | ||||||
Capitalizations | 424 | 562 | 632 | |||||||||
Amortization related to: | ||||||||||||
Net investment gains (losses) and net derivative gains (losses) | (104 | ) | 227 | (270 | ) | |||||||
Other expenses | (583 | ) | (478 | ) | (709 | ) | ||||||
Total amortization | (687 | ) | (251 | ) | (979 | ) | ||||||
Unrealized investment gains (losses) | (170 | ) | 495 | (145 | ) | |||||||
Other (1) | — | (220 | ) | — | ||||||||
Balance at December 31, | 5,905 | 6,338 | 5,752 | |||||||||
VOBA | ||||||||||||
Balance at January 1, | 78 | 80 | 97 | |||||||||
Amortization related to: | ||||||||||||
Other expenses | (8 | ) | (10 | ) | (12 | ) | ||||||
Total amortization | (8 | ) | (10 | ) | (12 | ) | ||||||
Unrealized investment gains (losses) | — | 8 | (5 | ) | ||||||||
Balance at December 31, | 70 | 78 | 80 | |||||||||
Total DAC and VOBA | ||||||||||||
Balance at December 31, | $ | 5,975 | $ | 6,416 | $ | 5,832 | ||||||
______________ | ||||||||||||
-1 | The year ended December 31, 2013 includes ($220) million that was reclassified to DAC from other liabilities. The amounts reclassified relate to affiliated reinsurance agreements accounted for using the deposit method of accounting and represent the DAC amortization on the expense allowances assumed on the agreements from inception. These amounts were previously included in the calculated value of the deposit payable on these agreements and were recorded within other liabilities. | |||||||||||
Information regarding Deferred Policy Acquisition Costs And Value Of Business Acquired By Segment | Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Retail | $ | 5,544 | $ | 5,990 | ||||||||
Group, Voluntary & Worksite Benefits | 324 | 333 | ||||||||||
Corporate Benefit Funding | 106 | 93 | ||||||||||
Corporate & Other | 1 | — | ||||||||||
Total | $ | 5,975 | $ | 6,416 | ||||||||
Deferred Sales Inducements | Information regarding other intangibles was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
DSI | ||||||||||||
Balance at January 1, | $ | 175 | $ | 180 | $ | 184 | ||||||
Capitalization | 10 | 15 | 22 | |||||||||
Amortization | (28 | ) | (20 | ) | (26 | ) | ||||||
Unrealized investment gains (losses) | (35 | ) | — | — | ||||||||
Balance at December 31, | $ | 122 | $ | 175 | $ | 180 | ||||||
VODA and VOCRA | ||||||||||||
Balance at January 1, | $ | 325 | $ | 353 | $ | 378 | ||||||
Amortization | (30 | ) | (28 | ) | (25 | ) | ||||||
Balance at December 31, | $ | 295 | $ | 325 | $ | 353 | ||||||
Accumulated amortization | $ | 162 | $ | 132 | $ | 104 | ||||||
Value of Distribution Agreements and Customer Relationships Acquired | Information regarding other intangibles was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
DSI | ||||||||||||
Balance at January 1, | $ | 175 | $ | 180 | $ | 184 | ||||||
Capitalization | 10 | 15 | 22 | |||||||||
Amortization | (28 | ) | (20 | ) | (26 | ) | ||||||
Unrealized investment gains (losses) | (35 | ) | — | — | ||||||||
Balance at December 31, | $ | 122 | $ | 175 | $ | 180 | ||||||
VODA and VOCRA | ||||||||||||
Balance at January 1, | $ | 325 | $ | 353 | $ | 378 | ||||||
Amortization | (30 | ) | (28 | ) | (25 | ) | ||||||
Balance at December 31, | $ | 295 | $ | 325 | $ | 353 | ||||||
Accumulated amortization | $ | 162 | $ | 132 | $ | 104 | ||||||
Estimated Future Amortization Expense | The estimated future amortization expense to be reported in other expenses for the next five years is as follows: | |||||||||||
VOBA | VODA and VOCRA | |||||||||||
(In millions) | ||||||||||||
2015 | $ | 9 | $ | 30 | ||||||||
2016 | $ | 4 | $ | 30 | ||||||||
2017 | $ | 5 | $ | 28 | ||||||||
2018 | $ | 5 | $ | 26 | ||||||||
2019 | $ | 5 | $ | 24 | ||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Reinsurance Disclosure [Line Items] | ||||||||||||||||||||||||||||||||
Effects of reinsurance | The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: | |||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Premiums | ||||||||||||||||||||||||||||||||
Direct premiums | $ | 20,963 | $ | 20,290 | $ | 19,821 | ||||||||||||||||||||||||||
Reinsurance assumed | 1,673 | 1,469 | 1,350 | |||||||||||||||||||||||||||||
Reinsurance ceded | (1,252 | ) | (1,284 | ) | (1,291 | ) | ||||||||||||||||||||||||||
Net premiums | $ | 21,384 | $ | 20,475 | $ | 19,880 | ||||||||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||||
Direct universal life and investment-type product policy fees | $ | 3,029 | $ | 2,913 | $ | 2,763 | ||||||||||||||||||||||||||
Reinsurance assumed | 48 | 41 | 39 | |||||||||||||||||||||||||||||
Reinsurance ceded | (611 | ) | (591 | ) | (563 | ) | ||||||||||||||||||||||||||
Net universal life and investment-type product policy fees | $ | 2,466 | $ | 2,363 | $ | 2,239 | ||||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||
Direct other revenues | $ | 1,040 | $ | 970 | $ | 887 | ||||||||||||||||||||||||||
Reinsurance assumed | 2 | (2 | ) | (6 | ) | |||||||||||||||||||||||||||
Reinsurance ceded | 766 | 731 | 849 | |||||||||||||||||||||||||||||
Net other revenues | $ | 1,808 | $ | 1,699 | $ | 1,730 | ||||||||||||||||||||||||||
Policyholder benefits and claims | ||||||||||||||||||||||||||||||||
Direct policyholder benefits and claims | $ | 23,978 | $ | 23,305 | $ | 22,677 | ||||||||||||||||||||||||||
Reinsurance assumed | 1,416 | 1,225 | 1,208 | |||||||||||||||||||||||||||||
Reinsurance ceded | (1,539 | ) | (1,498 | ) | (1,616 | ) | ||||||||||||||||||||||||||
Net policyholder benefits and claims | $ | 23,855 | $ | 23,032 | $ | 22,269 | ||||||||||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||||
Direct interest credited to policyholder account balances | $ | 2,227 | $ | 2,322 | $ | 2,455 | ||||||||||||||||||||||||||
Reinsurance assumed | 35 | 35 | 33 | |||||||||||||||||||||||||||||
Reinsurance ceded | (88 | ) | (104 | ) | (98 | ) | ||||||||||||||||||||||||||
Net interest credited to policyholder account balances | $ | 2,174 | $ | 2,253 | $ | 2,390 | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||
Direct other expenses | $ | 5,132 | $ | 5,028 | $ | 5,328 | ||||||||||||||||||||||||||
Reinsurance assumed | 399 | 427 | 479 | |||||||||||||||||||||||||||||
Reinsurance ceded | 540 | 533 | 587 | |||||||||||||||||||||||||||||
Net other expenses | $ | 6,071 | $ | 5,988 | $ | 6,394 | ||||||||||||||||||||||||||
The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Direct | Assumed | Ceded | Total | Direct | Assumed | Ceded | Total | |||||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||||||||||
Sheet | Sheet | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 1,711 | $ | 649 | $ | 21,079 | $ | 23,439 | $ | 1,700 | $ | 527 | $ | 21,410 | $ | 23,637 | ||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 6,002 | 391 | (418 | ) | 5,975 | 6,567 | 330 | (481 | ) | 6,416 | ||||||||||||||||||||||
Total assets | $ | 7,713 | $ | 1,040 | $ | 20,661 | $ | 29,414 | $ | 8,267 | $ | 857 | $ | 20,929 | $ | 30,053 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Future policy benefits | $ | 115,143 | $ | 2,259 | $ | — | $ | 117,402 | $ | 110,072 | $ | 1,891 | $ | — | $ | 111,963 | ||||||||||||||||
Policyholder account balances | 95,601 | 301 | — | 95,902 | 92,246 | 252 | — | 92,498 | ||||||||||||||||||||||||
Other policy-related balances | 5,353 | 455 | 32 | 5,840 | 5,416 | 294 | (39 | ) | 5,671 | |||||||||||||||||||||||
Other liabilities | 10,350 | 7,020 | 16,077 | 33,447 | 8,690 | 7,046 | 16,444 | 32,180 | ||||||||||||||||||||||||
Total liabilities | $ | 226,447 | $ | 10,035 | $ | 16,109 | $ | 252,591 | $ | 216,424 | $ | 9,483 | $ | 16,405 | $ | 242,312 | ||||||||||||||||
Affiliated Entity [Member] | ||||||||||||||||||||||||||||||||
Reinsurance Disclosure [Line Items] | ||||||||||||||||||||||||||||||||
Effects of reinsurance | Information regarding the significant effects of affiliated reinsurance included in the consolidated statements of operations was as follows: | |||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Premiums | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 681 | $ | 451 | $ | 319 | ||||||||||||||||||||||||||
Reinsurance ceded | (36 | ) | (45 | ) | (54 | ) | ||||||||||||||||||||||||||
Net premiums | $ | 645 | $ | 406 | $ | 265 | ||||||||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 48 | $ | 40 | $ | 39 | ||||||||||||||||||||||||||
Reinsurance ceded | (240 | ) | (221 | ) | (216 | ) | ||||||||||||||||||||||||||
Net universal life and investment-type product policy fees | $ | (192 | ) | $ | (181 | ) | $ | (177 | ) | |||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 2 | $ | (2 | ) | $ | (6 | ) | ||||||||||||||||||||||||
Reinsurance ceded | 713 | 675 | 790 | |||||||||||||||||||||||||||||
Net other revenues | $ | 715 | $ | 673 | $ | 784 | ||||||||||||||||||||||||||
Policyholder benefits and claims | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 623 | $ | 402 | $ | 334 | ||||||||||||||||||||||||||
Reinsurance ceded | (197 | ) | (144 | ) | (177 | ) | ||||||||||||||||||||||||||
Net policyholder benefits and claims | $ | 426 | $ | 258 | $ | 157 | ||||||||||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 33 | $ | 31 | $ | 30 | ||||||||||||||||||||||||||
Reinsurance ceded | (88 | ) | (102 | ) | (98 | ) | ||||||||||||||||||||||||||
Net interest credited to policyholder account balances | $ | (55 | ) | $ | (71 | ) | $ | (68 | ) | |||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||
Reinsurance assumed | $ | 298 | $ | 326 | $ | 357 | ||||||||||||||||||||||||||
Reinsurance ceded | 680 | 653 | 789 | |||||||||||||||||||||||||||||
Net other expenses | $ | 978 | $ | 979 | $ | 1,146 | ||||||||||||||||||||||||||
Information regarding the significant effects of affiliated reinsurance included in the consolidated balance sheets was as follows at: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Assumed | Ceded | Assumed | Ceded | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 257 | $ | 15,453 | $ | 109 | $ | 15,748 | ||||||||||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 370 | (231 | ) | 309 | (273 | ) | ||||||||||||||||||||||||||
Total assets | $ | 627 | $ | 15,222 | $ | 418 | $ | 15,475 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Future policy benefits | $ | 1,146 | $ | — | $ | 761 | $ | — | ||||||||||||||||||||||||
Policyholder account balances | 288 | — | 239 | — | ||||||||||||||||||||||||||||
Other policy-related balances | 264 | 32 | 67 | (39 | ) | |||||||||||||||||||||||||||
Other liabilities | 6,610 | 13,545 | 6,606 | 14,044 | ||||||||||||||||||||||||||||
Total liabilities | $ | 8,308 | $ | 13,577 | $ | 7,673 | $ | 14,005 | ||||||||||||||||||||||||
Closed_Block_Tables
Closed Block (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Closed Block Disclosure [Abstract] | |||||||||||||
Closed block liabilities and assets | Information regarding the closed block liabilities and assets designated to the closed block was as follows at: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In millions) | |||||||||||||
Closed Block Liabilities | |||||||||||||
Future policy benefits | $ | 41,667 | $ | 42,076 | |||||||||
Other policy-related balances | 265 | 298 | |||||||||||
Policyholder dividends payable | 461 | 456 | |||||||||||
Policyholder dividend obligation | 3,155 | 1,771 | |||||||||||
Current income tax payable | 1 | 18 | |||||||||||
Other liabilities | 646 | 582 | |||||||||||
Total closed block liabilities | 46,195 | 45,201 | |||||||||||
Assets Designated to the Closed Block | |||||||||||||
Investments: | |||||||||||||
Fixed maturity securities available-for-sale, at estimated fair value | 29,199 | 28,374 | |||||||||||
Equity securities available-for-sale, at estimated fair value | 91 | 86 | |||||||||||
Mortgage loans | 6,076 | 6,155 | |||||||||||
Policy loans | 4,646 | 4,669 | |||||||||||
Real estate and real estate joint ventures | 666 | 492 | |||||||||||
Other invested assets | 1,065 | 814 | |||||||||||
Total investments | 41,743 | 40,590 | |||||||||||
Cash and cash equivalents | 227 | 238 | |||||||||||
Accrued investment income | 477 | 477 | |||||||||||
Premiums, reinsurance and other receivables | 67 | 98 | |||||||||||
Deferred income tax assets | 289 | 293 | |||||||||||
Total assets designated to the closed block | 42,803 | 41,696 | |||||||||||
Excess of closed block liabilities over assets designated to the closed block | 3,392 | 3,505 | |||||||||||
Amounts included in AOCI: | |||||||||||||
Unrealized investment gains (losses), net of income tax | 2,291 | 1,502 | |||||||||||
Unrealized gains (losses) on derivatives, net of income tax | 28 | (3 | ) | ||||||||||
Allocated to policyholder dividend obligation, net of income tax | (2,051 | ) | (1,151 | ) | |||||||||
Total amounts included in AOCI | 268 | 348 | |||||||||||
Maximum future earnings to be recognized from closed block assets and liabilities | $ | 3,660 | $ | 3,853 | |||||||||
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions) | |||||||||||||
Balance at January 1, | $ | 1,771 | $ | 3,828 | $ | 2,919 | |||||||
Change in unrealized investment and derivative gains (losses) | 1,384 | (2,057 | ) | 909 | |||||||||
Balance at December 31, | $ | 3,155 | $ | 1,771 | $ | 3,828 | |||||||
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions) | |||||||||||||
Revenues | |||||||||||||
Premiums | $ | 1,918 | $ | 1,987 | $ | 2,139 | |||||||
Net investment income | 2,093 | 2,130 | 2,188 | ||||||||||
Net investment gains (losses) | 7 | 25 | 61 | ||||||||||
Net derivative gains (losses) | 20 | (6 | ) | (12 | ) | ||||||||
Total revenues | 4,038 | 4,136 | 4,376 | ||||||||||
Expenses | |||||||||||||
Policyholder benefits and claims | 2,598 | 2,702 | 2,783 | ||||||||||
Policyholder dividends | 988 | 979 | 1,072 | ||||||||||
Other expenses | 155 | 165 | 179 | ||||||||||
Total expenses | 3,741 | 3,846 | 4,034 | ||||||||||
Revenues, net of expenses before provision for income tax expense (benefit) | 297 | 290 | 342 | ||||||||||
Provision for income tax expense (benefit) | 104 | 101 | 120 | ||||||||||
Revenues, net of expenses and provision for income tax expense (benefit) from continuing operations | 193 | 189 | 222 | ||||||||||
Revenues, net of expenses and provision for income tax expense (benefit) from discontinued operations | — | — | 10 | ||||||||||
Revenues, net of expenses and provision for income tax expense (benefit) | $ | 193 | $ | 189 | $ | 232 | |||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, ABS and commercial mortgage-backed securities (“CMBS”). | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Cost or | Gross Unrealized | Estimated | Cost or | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Gains | Temporary | OTTI | Value | Cost | Gains | Temporary | OTTI | Value | |||||||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 59,532 | $ | 6,246 | $ | 421 | $ | — | $ | 65,357 | $ | 60,244 | $ | 4,678 | $ | 693 | $ | — | $ | 64,229 | ||||||||||||||||||||
U.S. Treasury and agency | 34,391 | 4,698 | 19 | — | 39,070 | 29,508 | 1,730 | 694 | — | 30,544 | ||||||||||||||||||||||||||||||
Foreign corporate | 28,395 | 1,934 | 511 | — | 29,818 | 27,082 | 1,959 | 285 | — | 28,756 | ||||||||||||||||||||||||||||||
RMBS | 26,893 | 1,493 | 157 | 66 | 28,163 | 24,119 | 1,109 | 368 | 150 | 24,710 | ||||||||||||||||||||||||||||||
ABS (1) | 8,206 | 102 | 82 | — | 8,226 | 7,789 | 151 | 117 | (1 | ) | 7,824 | |||||||||||||||||||||||||||||
CMBS | 7,705 | 241 | 33 | — | 7,913 | 8,203 | 262 | 89 | — | 8,376 | ||||||||||||||||||||||||||||||
State and political subdivision | 5,329 | 1,197 | 6 | — | 6,520 | 5,386 | 467 | 76 | — | 5,777 | ||||||||||||||||||||||||||||||
Foreign government | 3,153 | 761 | 70 | — | 3,844 | 3,040 | 597 | 107 | — | 3,530 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 173,604 | $ | 16,672 | $ | 1,299 | $ | 66 | $ | 188,911 | $ | 165,371 | $ | 10,953 | $ | 2,429 | $ | 149 | $ | 173,746 | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 1,236 | $ | 142 | $ | 26 | $ | — | $ | 1,352 | $ | 1,070 | $ | 97 | $ | 3 | $ | — | $ | 1,164 | ||||||||||||||||||||
Non-redeemable preferred stock | 690 | 53 | 30 | — | 713 | 743 | 62 | 77 | — | 728 | ||||||||||||||||||||||||||||||
Total equity securities | $ | 1,926 | $ | 195 | $ | 56 | $ | — | $ | 2,065 | $ | 1,813 | $ | 159 | $ | 80 | $ | — | $ | 1,892 | ||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The noncredit loss component of OTTI losses was in an unrealized gain position of $1 million for ABS at December 31, 2013, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “—Net Unrealized Investment Gains (Losses).” | |||||||||||||||||||||||||||||||||||||||
Available-for-sale fixed maturity securities contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||||||||||||||||||||||
Cost | Fair | Cost | Fair | |||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,841 | $ | 5,902 | $ | 6,411 | $ | 6,516 | ||||||||||||||||||||||||||||||||
Due after one year through five years | 36,600 | 38,115 | 34,696 | 36,556 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 39,257 | 41,519 | 35,725 | 38,347 | ||||||||||||||||||||||||||||||||||||
Due after ten years | 49,102 | 59,073 | 48,428 | 51,417 | ||||||||||||||||||||||||||||||||||||
Subtotal | 130,800 | 144,609 | 125,260 | 132,836 | ||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) | 42,804 | 44,302 | 40,111 | 40,910 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 173,604 | $ | 188,911 | $ | 165,371 | $ | 173,746 | ||||||||||||||||||||||||||||||||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Equal to or Greater than 12 Months | Less than 12 Months | Equal to or Greater than 12 Months | |||||||||||||||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 8,950 | $ | 260 | $ | 2,251 | $ | 161 | $ | 8,512 | $ | 426 | $ | 1,948 | $ | 267 | ||||||||||||||||||||||||
U.S. Treasury and agency | 3,933 | 6 | 982 | 13 | 10,077 | 687 | 33 | 7 | ||||||||||||||||||||||||||||||||
Foreign corporate | 7,052 | 397 | 1,165 | 114 | 4,217 | 176 | 952 | 109 | ||||||||||||||||||||||||||||||||
RMBS | 3,141 | 63 | 1,900 | 160 | 8,194 | 291 | 1,675 | 227 | ||||||||||||||||||||||||||||||||
ABS | 3,147 | 45 | 732 | 37 | 1,701 | 28 | 530 | 88 | ||||||||||||||||||||||||||||||||
CMBS | 772 | 20 | 461 | 13 | 2,022 | 74 | 221 | 15 | ||||||||||||||||||||||||||||||||
State and political subdivision | 26 | — | 76 | 6 | 737 | 44 | 92 | 32 | ||||||||||||||||||||||||||||||||
Foreign government | 327 | 32 | 265 | 38 | 763 | 94 | 54 | 13 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 27,348 | $ | 823 | $ | 7,832 | $ | 542 | $ | 36,223 | $ | 1,820 | $ | 5,505 | $ | 758 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 98 | $ | 26 | $ | 1 | $ | — | $ | 37 | $ | 3 | $ | — | $ | — | ||||||||||||||||||||||||
Non-redeemable preferred stock | 32 | — | 139 | 30 | 222 | 41 | 125 | 36 | ||||||||||||||||||||||||||||||||
Total equity securities | $ | 130 | $ | 26 | $ | 140 | $ | 30 | $ | 259 | $ | 44 | $ | 125 | $ | 36 | ||||||||||||||||||||||||
Total number of securities in an | 1,997 | 642 | 2,211 | 469 | ||||||||||||||||||||||||||||||||||||
unrealized loss position | ||||||||||||||||||||||||||||||||||||||||
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Carrying | % of | Carrying | % of | |||||||||||||||||||||||||||||||||||||
Value | Total | Value | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-investment: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 32,482 | 66.2 | % | $ | 33,072 | 71.9 | % | ||||||||||||||||||||||||||||||||
Agricultural | 11,033 | 22.5 | 11,025 | 24 | ||||||||||||||||||||||||||||||||||||
Residential | 5,494 | 11.2 | 1,858 | 4 | ||||||||||||||||||||||||||||||||||||
Subtotal (1) | 49,009 | 99.9 | 45,955 | 99.9 | ||||||||||||||||||||||||||||||||||||
Valuation allowances | (258 | ) | (0.5 | ) | (272 | ) | (0.6 | ) | ||||||||||||||||||||||||||||||||
Subtotal mortgage loans held-for-investment, net | 48,751 | 99.4 | 45,683 | 99.3 | ||||||||||||||||||||||||||||||||||||
Residential — FVO | 308 | 0.6 | 338 | 0.7 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans held-for-investment, net | 49,059 | 100 | 46,021 | 100 | ||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-sale | — | — | 3 | — | ||||||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 49,059 | 100 | % | $ | 46,024 | 100 | % | ||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Purchases of mortgage loans were $4.7 billion and $2.2 billion for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 318 | $ | 75 | $ | — | $ | 393 | ||||||||||||||||||||||||||||||||
Provision (release) | (50 | ) | 2 | — | (48 | ) | ||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | (12 | ) | (24 | ) | — | (36 | ) | |||||||||||||||||||||||||||||||||
Transfers to held-for-sale | — | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 256 | 48 | — | 304 | ||||||||||||||||||||||||||||||||||||
Provision (release) | (43 | ) | 3 | 19 | (21 | ) | ||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | — | (11 | ) | — | (11 | ) | ||||||||||||||||||||||||||||||||||
Transfers to held-for-sale | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 213 | 40 | 19 | 272 | ||||||||||||||||||||||||||||||||||||
Provision (release) | (8 | ) | (4 | ) | 27 | 15 | ||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | (23 | ) | (1 | ) | (5 | ) | (29 | ) | ||||||||||||||||||||||||||||||||
Transfers to held-for-sale | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 182 | $ | 35 | $ | 41 | $ | 258 | ||||||||||||||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: | |||||||||||||||||||||||||||||||||||||||
Past Due | Nonaccrual Status | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 75 | $ | 169 | ||||||||||||||||||||||||||||||||
Agricultural | 1 | 44 | 41 | 47 | ||||||||||||||||||||||||||||||||||||
Residential | 149 | 46 | 149 | 46 | ||||||||||||||||||||||||||||||||||||
Total | $ | 150 | $ | 90 | $ | 265 | $ | 262 | ||||||||||||||||||||||||||||||||
Investment in leveraged leases | Investment in leveraged and direct financing leases consisted of the following at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Leveraged Leases | Direct Financing Leases | Leveraged Leases | Direct Financing Leases | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Rental receivables, net | $ | 1,320 | $ | 406 | $ | 1,393 | $ | 413 | ||||||||||||||||||||||||||||||||
Estimated residual values | 827 | 57 | 853 | 52 | ||||||||||||||||||||||||||||||||||||
Subtotal | 2,147 | 463 | 2,246 | 465 | ||||||||||||||||||||||||||||||||||||
Unearned income | (686 | ) | (178 | ) | (742 | ) | (177 | ) | ||||||||||||||||||||||||||||||||
Investment in leases, net of non-recourse debt | $ | 1,461 | $ | 285 | $ | 1,504 | $ | 288 | ||||||||||||||||||||||||||||||||
Net income from investment in leveraged leases | The components of income from investments in leveraged and direct financing leases, excluding net investment gains (losses), were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Leveraged Leases | Direct Financing Leases | Leveraged Leases | Direct Financing Leases | Leveraged Leases | Direct Financing Leases | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Income from investment in leases | $ | 51 | $ | 19 | $ | 60 | $ | 17 | $ | 34 | $ | 15 | ||||||||||||||||||||||||||||
Less: Income tax expense on leases | 18 | 7 | 21 | 6 | 12 | 5 | ||||||||||||||||||||||||||||||||||
Investment income after income tax | $ | 33 | $ | 12 | $ | 39 | $ | 11 | $ | 22 | $ | 10 | ||||||||||||||||||||||||||||
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 15,374 | $ | 8,521 | $ | 19,120 | ||||||||||||||||||||||||||||||||||
Fixed maturity securities with noncredit OTTI losses in AOCI | (66 | ) | (149 | ) | (256 | ) | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 15,308 | 8,372 | 18,864 | |||||||||||||||||||||||||||||||||||||
Equity securities | 173 | 83 | (13 | ) | ||||||||||||||||||||||||||||||||||||
Derivatives | 1,649 | 361 | 1,052 | |||||||||||||||||||||||||||||||||||||
Short-term investments | — | — | (2 | ) | ||||||||||||||||||||||||||||||||||||
Other | 87 | 5 | 18 | |||||||||||||||||||||||||||||||||||||
Subtotal | 17,217 | 8,821 | 19,919 | |||||||||||||||||||||||||||||||||||||
Amounts allocated from: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (1,964 | ) | (610 | ) | (5,120 | ) | ||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (3 | ) | 5 | 12 | ||||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (918 | ) | (721 | ) | (1,231 | ) | ||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (3,155 | ) | (1,771 | ) | (3,828 | ) | ||||||||||||||||||||||||||||||||||
Subtotal | (6,040 | ) | (3,097 | ) | (10,167 | ) | ||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 25 | 51 | 86 | |||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (3,928 | ) | (2,070 | ) | (3,498 | ) | ||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 7,274 | 3,705 | 6,340 | |||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $ | 7,273 | $ | 3,704 | $ | 6,339 | ||||||||||||||||||||||||||||||||||
The changes in net unrealized investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 3,704 | $ | 6,339 | $ | 4,868 | ||||||||||||||||||||||||||||||||||
Fixed maturity securities on which noncredit OTTI losses have been recognized | 83 | 107 | 266 | |||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) during the year | 8,313 | (11,205 | ) | 4,679 | ||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (1,354 | ) | 4,510 | (1,625 | ) | |||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (8 | ) | (7 | ) | (21 | ) | ||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (197 | ) | 510 | (129 | ) | |||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (1,384 | ) | 2,057 | (909 | ) | |||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (26 | ) | (35 | ) | (86 | ) | ||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (1,858 | ) | 1,428 | (704 | ) | |||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 7,273 | 3,704 | 6,339 | |||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 7,273 | $ | 3,704 | $ | 6,339 | ||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | $ | 3,569 | $ | (2,635 | ) | $ | 1,471 | |||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | — | — | — | |||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $ | 3,569 | $ | (2,635 | ) | $ | 1,471 | |||||||||||||||||||||||||||||||||
Other than temporary impairment, credit losses recognized earnings | The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | (149 | ) | $ | (256 | ) | ||||||||||||||||||||||||||||||||||
Noncredit OTTI losses and subsequent changes recognized | 10 | 47 | ||||||||||||||||||||||||||||||||||||||
Securities sold with previous noncredit OTTI loss | 41 | 114 | ||||||||||||||||||||||||||||||||||||||
Subsequent changes in estimated fair value | 32 | (54 | ) | |||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | (66 | ) | $ | (149 | ) | ||||||||||||||||||||||||||||||||||
Securities Lending | Elements of the securities lending program are presented below at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Securities on loan: (1) | ||||||||||||||||||||||||||||||||||||||||
Amortized cost | $ | 19,099 | $ | 18,829 | ||||||||||||||||||||||||||||||||||||
Estimated fair value | $ | 21,185 | $ | 19,153 | ||||||||||||||||||||||||||||||||||||
Cash collateral on deposit from counterparties (2) | $ | 21,635 | $ | 19,673 | ||||||||||||||||||||||||||||||||||||
Security collateral on deposit from counterparties (3) | $ | 19 | $ | — | ||||||||||||||||||||||||||||||||||||
Reinvestment portfolio — estimated fair value | $ | 22,046 | $ | 19,822 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Included within fixed maturity securities, short-term investments and equity securities. | |||||||||||||||||||||||||||||||||||||||
-2 | Included within payables for collateral under securities loaned and other transactions. | |||||||||||||||||||||||||||||||||||||||
-3 | Security collateral on deposit from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Invested assets on deposit (regulatory deposits) | $ | 1,421 | $ | 1,338 | ||||||||||||||||||||||||||||||||||||
Invested assets pledged as collateral (1) | 20,712 | 19,555 | ||||||||||||||||||||||||||||||||||||||
Total invested assets on deposit and pledged as collateral | $ | 22,133 | $ | 20,893 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4), and derivative transactions (see Note 9). | |||||||||||||||||||||||||||||||||||||||
Purchased credit impaired investments, by invested asset class, held | The following table presents information about PCI fixed maturity securities acquired during the periods indicated: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Contractually required payments (including interest) | $ | 820 | $ | 1,612 | ||||||||||||||||||||||||||||||||||||
Cash flows expected to be collected (1) | $ | 644 | $ | 1,248 | ||||||||||||||||||||||||||||||||||||
Fair value of investments acquired | $ | 433 | $ | 841 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. | |||||||||||||||||||||||||||||||||||||||
The following table presents activity for the accretable yield on PCI fixed maturity securities for: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Accretable yield, January 1, | $ | 2,431 | $ | 2,357 | ||||||||||||||||||||||||||||||||||||
Investments purchased | 211 | 407 | ||||||||||||||||||||||||||||||||||||||
Accretion recognized in earnings | (217 | ) | (236 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | (47 | ) | (144 | ) | ||||||||||||||||||||||||||||||||||||
Reclassification (to) from nonaccretable difference | (495 | ) | 47 | |||||||||||||||||||||||||||||||||||||
Accretable yield, December 31, | $ | 1,883 | $ | 2,431 | ||||||||||||||||||||||||||||||||||||
The Company’s PCI fixed maturity securities were as follows at: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Outstanding principal and interest balance (1) | $ | 4,614 | $ | 4,653 | ||||||||||||||||||||||||||||||||||||
Carrying value (2) | $ | 3,651 | $ | 3,601 | ||||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. | |||||||||||||||||||||||||||||||||||||||
-2 | Estimated fair value plus accrued interest. | |||||||||||||||||||||||||||||||||||||||
The Components of Net Investment Income | The components of net investment income were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 8,260 | $ | 8,279 | $ | 8,295 | ||||||||||||||||||||||||||||||||||
Equity securities | 86 | 78 | 68 | |||||||||||||||||||||||||||||||||||||
Trading and FVO securities - Actively Traded and FVO general account securities (1) | 23 | 43 | 77 | |||||||||||||||||||||||||||||||||||||
Mortgage loans | 2,378 | 2,405 | 2,528 | |||||||||||||||||||||||||||||||||||||
Policy loans | 448 | 440 | 451 | |||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 725 | 699 | 593 | |||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 721 | 633 | 555 | |||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | 26 | 32 | 19 | |||||||||||||||||||||||||||||||||||||
Operating joint ventures | 2 | (4 | ) | (2 | ) | |||||||||||||||||||||||||||||||||||
Other | 61 | 21 | 7 | |||||||||||||||||||||||||||||||||||||
Subtotal | 12,730 | 12,626 | 12,591 | |||||||||||||||||||||||||||||||||||||
Less: Investment expenses | 838 | 844 | 743 | |||||||||||||||||||||||||||||||||||||
Subtotal, net | 11,892 | 11,782 | 11,848 | |||||||||||||||||||||||||||||||||||||
FVO CSEs - interest income: | ||||||||||||||||||||||||||||||||||||||||
Securities | 1 | 3 | 4 | |||||||||||||||||||||||||||||||||||||
Subtotal | 1 | 3 | 4 | |||||||||||||||||||||||||||||||||||||
Net investment income | $ | 11,893 | $ | 11,785 | $ | 11,852 | ||||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective years included in net investment income were ($14) million, $4 million and $44 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector and industry: | ||||||||||||||||||||||||||||||||||||||||
U.S. and foreign corporate securities — by industry: | ||||||||||||||||||||||||||||||||||||||||
Consumer | $ | (6 | ) | $ | (12 | ) | $ | (19 | ) | |||||||||||||||||||||||||||||||
Utility | — | (48 | ) | (29 | ) | |||||||||||||||||||||||||||||||||||
Finance | — | (4 | ) | (21 | ) | |||||||||||||||||||||||||||||||||||
Communications | — | (2 | ) | (18 | ) | |||||||||||||||||||||||||||||||||||
Industrial | — | — | (4 | ) | ||||||||||||||||||||||||||||||||||||
Transportation | — | — | (1 | ) | ||||||||||||||||||||||||||||||||||||
Total U.S. and foreign corporate securities | (6 | ) | (66 | ) | (92 | ) | ||||||||||||||||||||||||||||||||||
RMBS | (20 | ) | (62 | ) | (70 | ) | ||||||||||||||||||||||||||||||||||
CMBS | — | — | (28 | ) | ||||||||||||||||||||||||||||||||||||
ABS | — | — | (2 | ) | ||||||||||||||||||||||||||||||||||||
OTTI losses on fixed maturity securities recognized in earnings | (26 | ) | (128 | ) | (192 | ) | ||||||||||||||||||||||||||||||||||
Fixed maturity securities — net gains (losses) on sales and disposals | (99 | ) | 177 | 16 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities | (125 | ) | 49 | (176 | ) | |||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector: | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | (16 | ) | (17 | ) | — | |||||||||||||||||||||||||||||||||||
Common stock | (5 | ) | (2 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||
OTTI losses on equity securities recognized in earnings | (21 | ) | (19 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||
Equity securities — net gains (losses) on sales and disposals | 42 | 6 | 15 | |||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities | 21 | (13 | ) | 8 | ||||||||||||||||||||||||||||||||||||
Trading and FVO securities — FVO general account securities | 1 | 11 | 11 | |||||||||||||||||||||||||||||||||||||
Mortgage loans | (36 | ) | 31 | 84 | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 252 | (15 | ) | (27 | ) | |||||||||||||||||||||||||||||||||||
Other limited partnership interests | (69 | ) | (41 | ) | (35 | ) | ||||||||||||||||||||||||||||||||||
Other investment portfolio gains (losses) | (108 | ) | 5 | (192 | ) | |||||||||||||||||||||||||||||||||||
Subtotal — investment portfolio gains (losses) | (64 | ) | 27 | (327 | ) | |||||||||||||||||||||||||||||||||||
FVO CSEs: | ||||||||||||||||||||||||||||||||||||||||
Securities | — | 2 | — | |||||||||||||||||||||||||||||||||||||
Long-term debt — related to securities | (1 | ) | (2 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||
Non-investment portfolio gains (losses) | 208 | 21 | 4 | |||||||||||||||||||||||||||||||||||||
Subtotal FVO CSEs and non-investment portfolio gains (losses) | 207 | 21 | (3 | ) | ||||||||||||||||||||||||||||||||||||
Total net investment gains (losses) | $ | 143 | $ | 48 | $ | (330 | ) | |||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the table below. Investment gains and losses on sales of securities are determined on a specific identification basis. | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 44,906 | $ | 45,538 | $ | 29,472 | $ | 128 | $ | 144 | $ | 126 | ||||||||||||||||||||||||||||
Gross investment gains | $ | 260 | $ | 556 | $ | 327 | $ | 46 | $ | 25 | $ | 23 | ||||||||||||||||||||||||||||
Gross investment losses | (359 | ) | (379 | ) | (311 | ) | (4 | ) | (19 | ) | (8 | ) | ||||||||||||||||||||||||||||
OTTI losses (1) | (26 | ) | (128 | ) | (192 | ) | (21 | ) | (19 | ) | (7 | ) | ||||||||||||||||||||||||||||
Net investment gains (losses) | $ | (125 | ) | $ | 49 | $ | (176 | ) | $ | 21 | $ | (13 | ) | $ | 8 | |||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | OTTI losses recognized in earnings include noncredit-related impairment losses of $0, $13 million and $67 million for the years ended December 31, 2014, 2013 and 2012, respectively, on (i) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position, and (ii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. | |||||||||||||||||||||||||||||||||||||||
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) | The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in OCI: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 277 | $ | 285 | ||||||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||
Initial impairments — credit loss OTTI recognized on securities not previously impaired | 1 | 4 | ||||||||||||||||||||||||||||||||||||||
Additional impairments — credit loss OTTI recognized on securities previously impaired | 15 | 54 | ||||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (30 | ) | (65 | ) | ||||||||||||||||||||||||||||||||||||
Securities impaired to net present value of expected future cash flows | — | — | ||||||||||||||||||||||||||||||||||||||
Increases in cash flows — accretion of previous credit loss OTTI | — | (1 | ) | |||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 263 | $ | 277 | ||||||||||||||||||||||||||||||||||||
Schedule of Invested Assets Transferred To and From Affiliates | The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred to affiliates | $ | 97 | $ | 781 | $ | 4 | ||||||||||||||||||||||||||||||||||
Amortized cost of invested assets transferred to affiliates | $ | 89 | $ | 688 | $ | 4 | ||||||||||||||||||||||||||||||||||
Net investment gains (losses) recognized on transfers | $ | 8 | $ | 93 | $ | — | ||||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred from affiliates | $ | 882 | $ | 882 | $ | — | ||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Disclosure Of Mortgage Loans Held For Investment And Valuation Allowances By Method Of Evaluation Of Credit Loss [Table Text Block] | Mortgage loans held-for-investment by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at and for the years ended: | |||||||||||||||||||||||||||||||||||||||
Evaluated Individually for Credit Losses | Evaluated Collectively for Credit Losses | Impaired Loans | ||||||||||||||||||||||||||||||||||||||
Impaired Loans with a Valuation Allowance | Impaired Loans without a Valuation Allowance | |||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Valuation | Unpaid Principal Balance | Recorded | Recorded | Valuation | Carrying | Average | ||||||||||||||||||||||||||||||||
Allowances | Investment | Investment | Allowances | Value | Recorded | |||||||||||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 75 | $ | 75 | $ | 24 | $ | 84 | $ | 84 | $ | 32,323 | $ | 158 | $ | 135 | $ | 298 | ||||||||||||||||||||||
Agricultural | 47 | 45 | 2 | 14 | 13 | 10,975 | 33 | 56 | 76 | |||||||||||||||||||||||||||||||
Residential | — | — | — | 40 | 37 | 5,457 | 41 | 37 | 17 | |||||||||||||||||||||||||||||||
Total | $ | 122 | $ | 120 | $ | 26 | $ | 138 | $ | 134 | $ | 48,755 | $ | 232 | $ | 228 | $ | 391 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 173 | $ | 169 | $ | 49 | $ | 247 | $ | 246 | $ | 32,657 | $ | 164 | $ | 366 | $ | 430 | ||||||||||||||||||||||
Agricultural | 64 | 62 | 7 | 35 | 34 | 10,929 | 33 | 89 | 151 | |||||||||||||||||||||||||||||||
Residential | — | — | — | 5 | 4 | 1,854 | 19 | 4 | 2 | |||||||||||||||||||||||||||||||
Total | $ | 237 | $ | 231 | $ | 56 | $ | 287 | $ | 284 | $ | 45,440 | $ | 216 | $ | 459 | $ | 583 | ||||||||||||||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at December 31, 2014 and 2013. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Total | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities (1) | $ | 163 | $ | 78 | $ | 159 | $ | 80 | ||||||||||||||||||||||||||||||||
Other invested assets | 59 | — | 82 | 7 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 37 | — | 61 | — | ||||||||||||||||||||||||||||||||||||
CSEs (assets (primarily securities) and liabilities (primarily debt)) (2) | 16 | 15 | 23 | 22 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures (3) | 9 | 15 | 1,181 | 443 | ||||||||||||||||||||||||||||||||||||
Total | $ | 284 | $ | 108 | $ | 1,506 | $ | 552 | ||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company consolidates certain fixed maturity securities purchased in an investment vehicle which was partially funded with affiliated long-term debt. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $2 million for both the years ended December 31, 2014 and 2013 and was $1 million for the year ended December 31, 2012. | |||||||||||||||||||||||||||||||||||||||
-2 | The Company consolidates entities that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of less than $1 million at estimated fair value at both December 31, 2014 and 2013. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $1 million, $3 million and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||
-3 | At December 31, 2013, the Company consolidated an open ended core real estate fund formed in the fourth quarter of 2013 (the “MetLife Core Property Fund”), which represented the majority of the balances at December 31, 2013. As a result of the quarterly reassessment in the first quarter of 2014, the Company no longer consolidated the MetLife Core Property Fund, effective March 31, 2014, based on the terms of the revised partnership agreement. The Company accounts for its retained interest in the real estate fund under the equity method. Assets of the real estate fund are a real estate investment trust which holds primarily traditional core income-producing real estate which has associated liabilities that are primarily non-recourse debt secured by certain real estate assets of the fund. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its investment in the real estate fund of $178 million at carrying value at December 31, 2013. The long-term debt bears interest primarily at fixed rates ranging from 1.39% to 4.45%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was less than $1 million for the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Carrying | Maximum | Carrying | Maximum | |||||||||||||||||||||||||||||||||||||
Amount | Exposure | Amount | Exposure | |||||||||||||||||||||||||||||||||||||
to Loss (1) | to Loss (1) | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) (2) | $ | 44,302 | $ | 44,302 | $ | 40,910 | $ | 40,910 | ||||||||||||||||||||||||||||||||
U.S. and foreign corporate | 1,919 | 1,919 | 2,251 | 2,251 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 3,722 | 4,833 | 3,168 | 4,273 | ||||||||||||||||||||||||||||||||||||
Other invested assets | 1,683 | 2,003 | 1,498 | 1,852 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 52 | 74 | 31 | 31 | ||||||||||||||||||||||||||||||||||||
Total | $ | 51,678 | $ | 53,131 | $ | 47,858 | $ | 49,317 | ||||||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $212 million and $257 million at December 31, 2014 and 2013, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. | |||||||||||||||||||||||||||||||||||||||
-2 | For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. | |||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans held-for-investment, were as follows at: | |||||||||||||||||||||||||||||||||||||||
Recorded Investment | Estimated | % of | ||||||||||||||||||||||||||||||||||||||
Debt Service Coverage Ratios | Total | % of | Fair | Total | ||||||||||||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | Value | ||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 26,810 | $ | 746 | $ | 761 | $ | 28,317 | 87.2 | % | $ | 29,860 | 87.7 | % | ||||||||||||||||||||||||||
65% to 75% | 2,783 | 391 | 86 | 3,260 | 10 | 3,322 | 9.8 | |||||||||||||||||||||||||||||||||
76% to 80% | 109 | — | 8 | 117 | 0.4 | 121 | 0.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 384 | 256 | 148 | 788 | 2.4 | 736 | 2.2 | |||||||||||||||||||||||||||||||||
Total | $ | 30,086 | $ | 1,393 | $ | 1,003 | $ | 32,482 | 100 | % | $ | 34,039 | 100 | % | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 24,585 | $ | 476 | $ | 596 | $ | 25,657 | 77.6 | % | $ | 26,900 | 78.4 | % | ||||||||||||||||||||||||||
65% to 75% | 5,219 | 438 | 104 | 5,761 | 17.4 | 5,852 | 17.1 | |||||||||||||||||||||||||||||||||
76% to 80% | 444 | 157 | 189 | 790 | 2.4 | 776 | 2.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 583 | 205 | 76 | 864 | 2.6 | 769 | 2.2 | |||||||||||||||||||||||||||||||||
Total | $ | 30,831 | $ | 1,276 | $ | 965 | $ | 33,072 | 100 | % | $ | 34,297 | 100 | % | ||||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans held-for-investment were as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 10,462 | 94.8 | % | $ | 10,165 | 92.2 | % | ||||||||||||||||||||||||||||||||
65% to 75% | 469 | 4.2 | 659 | 6 | ||||||||||||||||||||||||||||||||||||
76% to 80% | 17 | 0.2 | 84 | 0.8 | ||||||||||||||||||||||||||||||||||||
Greater than 80% | 85 | 0.8 | 117 | 1 | ||||||||||||||||||||||||||||||||||||
Total | $ | 11,033 | 100 | % | $ | 11,025 | 100 | % | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of residential mortgage loans held-for-investment were as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Performance indicators: | ||||||||||||||||||||||||||||||||||||||||
Performing | $ | 5,345 | 97.3 | % | $ | 1,812 | 97.5 | % | ||||||||||||||||||||||||||||||||
Nonperforming | 149 | 2.7 | 46 | 2.5 | ||||||||||||||||||||||||||||||||||||
Total | $ | 5,494 | 100 | % | $ | 1,858 | 100 | % | ||||||||||||||||||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: | |||||||||||||||||||||||||
Primary Underlying Risk Exposure | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Estimated Fair Value | Estimated Fair Value | |||||||||||||||||||||||||
Gross | Assets | Liabilities | Gross | Assets | Liabilities | |||||||||||||||||||||
Notional | Notional | |||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 5,632 | $ | 2,031 | $ | 18 | $ | 5,940 | $ | 1,277 | $ | 68 | |||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 2,709 | 65 | 101 | 2,591 | 252 | 122 | |||||||||||||||||||
Subtotal | 8,341 | 2,096 | 119 | 8,531 | 1,529 | 190 | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 2,191 | 447 | — | 2,584 | 77 | 109 | |||||||||||||||||||
Interest rate forwards | Interest rate | 70 | 18 | — | 205 | 3 | 3 | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 14,895 | 501 | 614 | 10,560 | 374 | 500 | |||||||||||||||||||
Subtotal | 17,156 | 966 | 614 | 13,349 | 454 | 612 | ||||||||||||||||||||
Total qualifying hedges | 25,497 | 3,062 | 733 | 21,880 | 1,983 | 802 | ||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 56,394 | 2,213 | 1,072 | 59,022 | 1,320 | 732 | |||||||||||||||||||
Interest rate floors | Interest rate | 36,141 | 319 | 108 | 38,220 | 323 | 234 | |||||||||||||||||||
Interest rate caps | Interest rate | 41,227 | 134 | 1 | 29,809 | 141 | — | |||||||||||||||||||
Interest rate futures | Interest rate | 70 | — | — | 105 | — | — | |||||||||||||||||||
Interest rate options | Interest rate | 6,399 | 379 | 15 | 4,849 | 120 | 8 | |||||||||||||||||||
Synthetic GICs | Interest rate | 4,298 | — | — | 4,409 | — | — | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 8,774 | 359 | 176 | 7,267 | 79 | 492 | |||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 3,985 | 92 | 80 | 4,261 | 44 | 32 | |||||||||||||||||||
Credit default swaps — purchased | Credit | 857 | 8 | 11 | 1,506 | 7 | 21 | |||||||||||||||||||
Credit default swaps — written | Credit | 7,419 | 130 | 5 | 6,600 | 124 | 1 | |||||||||||||||||||
Equity futures | Equity market | 954 | 10 | — | — | — | — | |||||||||||||||||||
Equity index options | Equity market | 7,698 | 328 | 352 | 1,147 | — | — | |||||||||||||||||||
Equity variance swaps | Equity market | 5,678 | 60 | 146 | — | — | — | |||||||||||||||||||
TRRs | Equity market | 911 | 10 | 33 | — | — | — | |||||||||||||||||||
Total non-designated or non-qualifying derivatives | 180,805 | 4,042 | 1,999 | 157,195 | 2,158 | 1,520 | ||||||||||||||||||||
Total | $ | 206,302 | $ | 7,104 | $ | 2,732 | $ | 179,075 | $ | 4,141 | $ | 2,322 | ||||||||||||||
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: | |||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives and hedging gains (losses) (1) | $ | 1,207 | $ | (1,205 | ) | $ | 77 | |||||||||||||||||||
Embedded derivatives | (170 | ) | 135 | 598 | ||||||||||||||||||||||
Total net derivative gains (losses) | $ | 1,037 | $ | (1,070 | ) | $ | 675 | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. | |||||||||||||||||||||||||
Earned Income On Derivatives And Income Statement Location | The following table presents earned income on derivatives: | |||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Qualifying hedges: | ||||||||||||||||||||||||||
Net investment income | $ | 162 | $ | 129 | $ | 108 | ||||||||||||||||||||
Interest credited to policyholder account balances | 106 | 148 | 146 | |||||||||||||||||||||||
Non-qualifying hedges: | ||||||||||||||||||||||||||
Net investment income | (4 | ) | (6 | ) | (6 | ) | ||||||||||||||||||||
Net derivative gains (losses) | 484 | 450 | 314 | |||||||||||||||||||||||
Policyholder benefits and claims | 8 | — | — | |||||||||||||||||||||||
Total | $ | 756 | $ | 721 | $ | 562 | ||||||||||||||||||||
Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments | The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments: | |||||||||||||||||||||||||
Net | Net | Policyholder | ||||||||||||||||||||||||
Derivative | Investment | Benefits and | ||||||||||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | 314 | $ | — | $ | — | ||||||||||||||||||||
Foreign currency exchange rate derivatives | 554 | — | — | |||||||||||||||||||||||
Credit derivatives — purchased | (2 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — written | (1 | ) | — | — | ||||||||||||||||||||||
Equity derivatives | 11 | (10 | ) | (10 | ) | |||||||||||||||||||||
Total | $ | 876 | $ | (10 | ) | $ | (10 | ) | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (1,753 | ) | $ | — | $ | — | |||||||||||||||||||
Foreign currency exchange rate derivatives | (69 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — purchased | (6 | ) | (14 | ) | — | |||||||||||||||||||||
Credit derivatives — written | 100 | 1 | — | |||||||||||||||||||||||
Equity derivatives | — | (22 | ) | — | ||||||||||||||||||||||
Total | $ | (1,728 | ) | $ | (35 | ) | $ | — | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (83 | ) | $ | — | $ | — | |||||||||||||||||||
Foreign currency exchange rate derivatives | (252 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — purchased | (72 | ) | (15 | ) | — | |||||||||||||||||||||
Credit derivatives — written | 105 | — | — | |||||||||||||||||||||||
Equity derivatives | — | (12 | ) | — | ||||||||||||||||||||||
Total | $ | (302 | ) | $ | (27 | ) | $ | — | ||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held in relation to trading portfolios. | |||||||||||||||||||||||||
-2 | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | |||||||||||||||||||||||||
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): | |||||||||||||||||||||||||
Derivatives in Fair Value | Hedged Items in Fair Value | Net Derivative Gains (Losses) Recognized for Derivatives | Net Derivative Gains (Losses) Recognized for Hedged Items | Ineffectiveness Recognized in Net Derivative Gains (Losses) | ||||||||||||||||||||||
Hedging Relationships | Hedging Relationships | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 4 | $ | (1 | ) | $ | 3 | ||||||||||||||||||
Policyholder liabilities (1) | 649 | (635 | ) | 14 | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | 13 | (11 | ) | 2 | |||||||||||||||||||||
Foreign-denominated PABs (2) | (283 | ) | 270 | (13 | ) | |||||||||||||||||||||
Total | $ | 383 | $ | (377 | ) | $ | 6 | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 34 | $ | (33 | ) | $ | 1 | ||||||||||||||||||
Policyholder liabilities (1) | (800 | ) | 807 | 7 | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | 13 | (12 | ) | 1 | |||||||||||||||||||||
Foreign-denominated PABs (2) | (98 | ) | 112 | 14 | ||||||||||||||||||||||
Total | $ | (851 | ) | $ | 874 | $ | 23 | |||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 2 | $ | (3 | ) | $ | (1 | ) | |||||||||||||||||
Policyholder liabilities (1) | (72 | ) | 89 | 17 | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | (1 | ) | 1 | — | |||||||||||||||||||||
Foreign-denominated PABs (2) | 32 | (41 | ) | (9 | ) | |||||||||||||||||||||
Total | $ | (39 | ) | $ | 46 | $ | 7 | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | Fixed rate liabilities reported in PABs or future policy benefits. | |||||||||||||||||||||||||
-2 | Fixed rate or floating rate liabilities. | |||||||||||||||||||||||||
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Rating Agency Designation of Referenced | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | ||||||||||||||||||||
Credit Obligations (1) | Fair Value | Amount of Future | Average | Fair Value | Amount of Future | Average | ||||||||||||||||||||
of Credit | Payments under | Years to | of Credit | Payments under | Years to | |||||||||||||||||||||
Default | Credit Default | Maturity (3) | Default | Credit Default | Maturity (3) | |||||||||||||||||||||
Swaps | Swaps (2) | Swaps | Swaps (2) | |||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||
Aaa/Aa/A | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | $ | 5 | $ | 415 | 2.2 | $ | 6 | $ | 395 | 2.6 | ||||||||||||||||
Credit default swaps referencing indices | 10 | 1,566 | 2.7 | 20 | 2,089 | 1.6 | ||||||||||||||||||||
Subtotal | 15 | 1,981 | 2.6 | 26 | 2,484 | 1.7 | ||||||||||||||||||||
Baa | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 15 | 1,002 | 2.8 | 16 | 874 | 3.2 | ||||||||||||||||||||
Credit default swaps referencing indices | 59 | 3,687 | 4.5 | 52 | 2,898 | 4.7 | ||||||||||||||||||||
Subtotal | 74 | 4,689 | 4.1 | 68 | 3,772 | 4.4 | ||||||||||||||||||||
Ba | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | 60 | 3 | — | 5 | 3.8 | ||||||||||||||||||||
Credit default swaps referencing indices | (1 | ) | 100 | 2 | — | — | — | |||||||||||||||||||
Subtotal | (1 | ) | 160 | 2.4 | — | 5 | 3.8 | |||||||||||||||||||
B | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | — | — | — | — | — | ||||||||||||||||||||
Credit default swaps referencing indices | 37 | 589 | 4.9 | 29 | 339 | 4.9 | ||||||||||||||||||||
Subtotal | 37 | 589 | 4.9 | 29 | 339 | 4.9 | ||||||||||||||||||||
Total | $ | 125 | $ | 7,419 | 3.8 | $ | 123 | $ | 6,600 | 3.4 | ||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. | |||||||||||||||||||||||||
-2 | Assumes the value of the referenced credit obligations is zero. | |||||||||||||||||||||||||
-3 | The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. | |||||||||||||||||||||||||
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: | ||||||||||||||||||||||||||
OTC-bilateral (1) | $ | 6,497 | $ | 2,092 | $ | 4,026 | $ | 2,232 | ||||||||||||||||||
OTC-cleared (1) | 740 | 682 | 251 | 117 | ||||||||||||||||||||||
Exchange-traded | 10 | — | — | — | ||||||||||||||||||||||
Total gross estimated fair value of derivatives (1) | 7,247 | 2,774 | 4,277 | 2,349 | ||||||||||||||||||||||
Amounts offset on the consolidated balance sheets | — | — | — | — | ||||||||||||||||||||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1) | 7,247 | 2,774 | 4,277 | 2,349 | ||||||||||||||||||||||
Gross amounts not offset on the consolidated balance sheets: | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: (2) | ||||||||||||||||||||||||||
OTC-bilateral | (1,742 | ) | (1,742 | ) | (1,844 | ) | (1,844 | ) | ||||||||||||||||||
OTC-cleared | (638 | ) | (638 | ) | (114 | ) | (114 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Cash collateral: (3), (4) | ||||||||||||||||||||||||||
OTC-bilateral | (2,470 | ) | (2 | ) | (1,143 | ) | (3 | ) | ||||||||||||||||||
OTC-cleared | (97 | ) | (40 | ) | (128 | ) | (3 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Securities collateral: (5) | ||||||||||||||||||||||||||
OTC-bilateral | (2,161 | ) | (333 | ) | (1,024 | ) | (319 | ) | ||||||||||||||||||
OTC-cleared | — | (3 | ) | — | — | |||||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Net amount after application of master netting agreements and collateral | $ | 139 | $ | 16 | $ | 24 | $ | 66 | ||||||||||||||||||
__________________ | ||||||||||||||||||||||||||
-1 | At December 31, 2014 and 2013, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $143 million and $136 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $42 million and $27 million, respectively. | |||||||||||||||||||||||||
-2 | Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. | |||||||||||||||||||||||||
-3 | Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. In certain instances, cash collateral pledged to the Company as initial margin for OTC-bilateral derivatives is held in separate custodial accounts and is not recorded on the Company’s balance sheet because the account title is in the name of the counterparty (but segregated for the benefit of the Company). The amount of this off-balance sheet collateral was $138 million and $0 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
-4 | The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2014 and 2013, the Company received excess cash collateral of $0 and $47 million, respectively, and provided excess cash collateral of $31 million and $3 million, respectively, which is not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
-5 | Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2014 none of the collateral had been sold or re-pledged . Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2014 and 2013, the Company received excess securities collateral with an estimated fair value of $243 million and $106 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2014 and 2013, the Company provided excess securities collateral with an estimated fair value of $57 million and $25 million, respectively, for its OTC-bilateral derivatives, and $155 million and $106 million, respectively, for its OTC-cleared derivatives, and $17 million and $0 respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of equity: | |||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gains | Amount and Location | Amount and Location | |||||||||||||||||||||||
Hedging Relationships | (Losses)Deferred in | of Gains (Losses) | of Gains (Losses) | |||||||||||||||||||||||
AOCI on Derivatives | Reclassified from | Recognized in Income (Loss) | ||||||||||||||||||||||||
AOCI into Income (Loss) | on Derivatives | |||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||
Net Derivative Gains (Losses) | Net Investment | Net Derivative | ||||||||||||||||||||||||
Income | Gains (Losses) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Interest rate swaps | $ | 587 | $ | 41 | $ | 9 | $ | 3 | ||||||||||||||||||
Interest rate forwards | 34 | (8 | ) | 2 | — | |||||||||||||||||||||
Foreign currency swaps | (15 | ) | (725 | ) | (2 | ) | 2 | |||||||||||||||||||
Credit forwards | — | — | 1 | — | ||||||||||||||||||||||
Total | $ | 606 | $ | (692 | ) | $ | 10 | $ | 5 | |||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (511 | ) | $ | 20 | $ | 8 | $ | (3 | ) | ||||||||||||||||
Interest rate forwards | (43 | ) | 1 | 2 | — | |||||||||||||||||||||
Foreign currency swaps | (120 | ) | (15 | ) | (3 | ) | 2 | |||||||||||||||||||
Credit forwards | (3 | ) | — | 1 | — | |||||||||||||||||||||
Total | $ | (677 | ) | $ | 6 | $ | 8 | $ | (1 | ) | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (55 | ) | $ | 3 | $ | 4 | $ | 1 | |||||||||||||||||
Interest rate forwards | (1 | ) | — | 2 | — | |||||||||||||||||||||
Foreign currency swaps | (187 | ) | (7 | ) | (5 | ) | (5 | ) | ||||||||||||||||||
Credit forwards | — | — | 1 | — | ||||||||||||||||||||||
Total | $ | (243 | ) | $ | (4 | ) | $ | 2 | $ | (4 | ) | |||||||||||||||
Schedule of Derivative Instruments | The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company’s financial strength rating at the reporting date or if the Company’s financial strength rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. | |||||||||||||||||||||||||
Estimated Fair Value of | Fair Value of Incremental | |||||||||||||||||||||||||
Collateral Provided | Collateral Provided Upon | |||||||||||||||||||||||||
Estimated | Fixed Maturity | Cash | One Notch | Downgrade in the Company’s | ||||||||||||||||||||||
Fair Value of Derivatives in | Securities | Downgrade in | Financial Strength Rating | |||||||||||||||||||||||
Net Liability | the Company’s | to a Level | ||||||||||||||||||||||||
Position (1) | Financial Strength Rating | that Triggers Full Overnight | ||||||||||||||||||||||||
Collateralization or Termination | ||||||||||||||||||||||||||
of the Derivative Position | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||
Derivatives subject to financial strength-contingent provisions | $ | 334 | $ | 390 | $ | — | $ | — | $ | — | ||||||||||||||||
Derivatives not subject to financial strength-contingent provisions | 4 | — | 2 | — | — | |||||||||||||||||||||
Total | $ | 338 | $ | 390 | $ | 2 | $ | — | $ | — | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Derivatives subject to financial strength-contingent provisions | $ | 354 | $ | 344 | $ | — | $ | — | $ | 5 | ||||||||||||||||
Derivatives not subject to financial strength-contingent provisions | 4 | — | 3 | — | — | |||||||||||||||||||||
Total | $ | 358 | $ | 344 | $ | 3 | $ | — | $ | 5 | ||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | After taking into consideration the existence of netting agreements. | |||||||||||||||||||||||||
Embedded Derivative Financial Instruments [Member] | ||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents changes in estimated fair value related to embedded derivatives: | |||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net derivative gains (losses) (1), (2) | $ | (170 | ) | $ | 135 | $ | 598 | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||
-1 | The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $14 million, ($42) million and ($71) million for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($9) million, $125 million and $122 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
-2 | See Note 6 for discussion of affiliated net derivative gains (losses) included in the table above. | |||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
Balance Sheet Location | 2014 | 2013 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts: | ||||||||||||||||||||||||||
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | $ | 657 | $ | (62 | ) | ||||||||||||||||||||
Options embedded in debt or equity securities | Investments | (150 | ) | (106 | ) | |||||||||||||||||||||
Net embedded derivatives within asset host contracts | $ | 507 | $ | (168 | ) | |||||||||||||||||||||
Net embedded derivatives within liability host contracts: | ||||||||||||||||||||||||||
Direct guaranteed minimum benefits | PABs | $ | (548 | ) | $ | (868 | ) | |||||||||||||||||||
Assumed guaranteed minimum benefits | PABs | 72 | — | |||||||||||||||||||||||
Funds withheld on ceded reinsurance | Other liabilities | 1,200 | 758 | |||||||||||||||||||||||
Other | PABs | 7 | 4 | |||||||||||||||||||||||
Net embedded derivatives within liability host contracts | $ | 731 | $ | (106 | ) | |||||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below. | |||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | |||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 60,420 | $ | 4,937 | $ | 65,357 | ||||||||||||||||||||||||
U.S. Treasury and agency | 21,625 | 17,445 | — | 39,070 | ||||||||||||||||||||||||||||
Foreign corporate | — | 26,227 | 3,591 | 29,818 | ||||||||||||||||||||||||||||
RMBS | — | 24,534 | 3,629 | 28,163 | ||||||||||||||||||||||||||||
ABS | — | 6,734 | 1,492 | 8,226 | ||||||||||||||||||||||||||||
CMBS | — | 7,464 | 449 | 7,913 | ||||||||||||||||||||||||||||
State and political subdivision | — | 6,520 | — | 6,520 | ||||||||||||||||||||||||||||
Foreign government | — | 3,642 | 202 | 3,844 | ||||||||||||||||||||||||||||
Total fixed maturity securities | 21,625 | 152,986 | 14,300 | 188,911 | ||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Common stock | 584 | 716 | 52 | 1,352 | ||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 550 | 163 | 713 | ||||||||||||||||||||||||||||
Total equity securities | 584 | 1,266 | 215 | 2,065 | ||||||||||||||||||||||||||||
Trading and FVO securities: | ||||||||||||||||||||||||||||||||
Actively Traded Securities | 22 | 627 | 5 | 654 | ||||||||||||||||||||||||||||
FVO general account securities | — | 22 | 14 | 36 | ||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 3 | 12 | 15 | ||||||||||||||||||||||||||||
Total trading and FVO securities | 22 | 652 | 31 | 705 | ||||||||||||||||||||||||||||
Short-term investments (1) | 860 | 3,091 | 230 | 4,181 | ||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 308 | 308 | ||||||||||||||||||||||||||||
Derivative assets: (2) | ||||||||||||||||||||||||||||||||
Interest rate | — | 5,524 | 17 | 5,541 | ||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 1,010 | 7 | 1,017 | ||||||||||||||||||||||||||||
Credit | — | 125 | 13 | 138 | ||||||||||||||||||||||||||||
Equity market | 10 | 279 | 119 | 408 | ||||||||||||||||||||||||||||
Total derivative assets | 10 | 6,938 | 156 | 7,104 | ||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 657 | 657 | ||||||||||||||||||||||||||||
Separate account assets (4) | 26,119 | 111,601 | 1,615 | 139,335 | ||||||||||||||||||||||||||||
Total assets | $ | 49,220 | $ | 276,534 | $ | 17,512 | $ | 343,266 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | ||||||||||||||||||||||||||||||||
Interest rate | $ | — | $ | 1,214 | $ | — | $ | 1,214 | ||||||||||||||||||||||||
Foreign currency exchange rate | — | 971 | — | 971 | ||||||||||||||||||||||||||||
Credit | — | 15 | 1 | 16 | ||||||||||||||||||||||||||||
Equity market | — | 382 | 149 | 531 | ||||||||||||||||||||||||||||
Total derivative liabilities | — | 2,582 | 150 | 2,732 | ||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 7 | 724 | 731 | ||||||||||||||||||||||||||||
Long-term debt | — | 82 | 35 | 117 | ||||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | — | 13 | 13 | ||||||||||||||||||||||||||||
Trading liabilities (5) | 215 | 24 | — | 239 | ||||||||||||||||||||||||||||
Total liabilities | $ | 215 | $ | 2,695 | $ | 922 | $ | 3,832 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | |||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 58,960 | $ | 5,269 | $ | 64,229 | ||||||||||||||||||||||||
U.S. Treasury and agency | 15,858 | 14,624 | 62 | 30,544 | ||||||||||||||||||||||||||||
Foreign corporate | — | 25,558 | 3,198 | 28,756 | ||||||||||||||||||||||||||||
RMBS | — | 22,197 | 2,513 | 24,710 | ||||||||||||||||||||||||||||
ABS | — | 5,298 | 2,526 | 7,824 | ||||||||||||||||||||||||||||
CMBS | — | 7,946 | 430 | 8,376 | ||||||||||||||||||||||||||||
State and political subdivision | — | 5,777 | — | 5,777 | ||||||||||||||||||||||||||||
Foreign government | — | 3,256 | 274 | 3,530 | ||||||||||||||||||||||||||||
Total fixed maturity securities | 15,858 | 143,616 | 14,272 | 173,746 | ||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Common stock | 361 | 753 | 50 | 1,164 | ||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 450 | 278 | 728 | ||||||||||||||||||||||||||||
Total equity securities | 361 | 1,203 | 328 | 1,892 | ||||||||||||||||||||||||||||
Trading and FVO securities: | ||||||||||||||||||||||||||||||||
Actively Traded Securities | 2 | 648 | 12 | 662 | ||||||||||||||||||||||||||||
FVO general account securities | — | 24 | 14 | 38 | ||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 23 | — | 23 | ||||||||||||||||||||||||||||
Total trading and FVO securities | 2 | 695 | 26 | 723 | ||||||||||||||||||||||||||||
Short-term investments (1) | 1,387 | 4,224 | 175 | 5,786 | ||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 338 | 338 | ||||||||||||||||||||||||||||
Derivative assets: (2) | ||||||||||||||||||||||||||||||||
Interest rate | — | 3,258 | 3 | 3,261 | ||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 735 | 14 | 749 | ||||||||||||||||||||||||||||
Credit | — | 108 | 23 | 131 | ||||||||||||||||||||||||||||
Equity market | — | — | — | — | ||||||||||||||||||||||||||||
Total derivative assets | — | 4,101 | 40 | 4,141 | ||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | (62 | ) | (62 | ) | ||||||||||||||||||||||||||
Separate account assets (4) | 28,422 | 105,165 | 1,209 | 134,796 | ||||||||||||||||||||||||||||
Total assets | $ | 46,030 | $ | 259,004 | $ | 16,326 | $ | 321,360 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | ||||||||||||||||||||||||||||||||
Interest rate | $ | — | $ | 1,150 | $ | 4 | $ | 1,154 | ||||||||||||||||||||||||
Foreign currency exchange rate | — | 1,146 | — | 1,146 | ||||||||||||||||||||||||||||
Credit | — | 22 | — | 22 | ||||||||||||||||||||||||||||
Equity market | — | — | — | — | ||||||||||||||||||||||||||||
Total derivative liabilities | — | 2,318 | 4 | 2,322 | ||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 4 | (110 | ) | (106 | ) | ||||||||||||||||||||||||||
Long-term debt | — | 79 | 43 | 122 | ||||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | — | 28 | 28 | ||||||||||||||||||||||||||||
Trading liabilities (5) | 260 | 2 | — | 262 | ||||||||||||||||||||||||||||
Total liabilities | $ | 260 | $ | 2,403 | $ | (35 | ) | $ | 2,628 | |||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. | |||||||||||||||||||||||||||||||
-2 | Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. | |||||||||||||||||||||||||||||||
-3 | Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within PABs and other liabilities on the consolidated balance sheets. At December 31, 2014 and 2013, equity securities also included embedded derivatives of ($150) million and ($106) million, respectively. | |||||||||||||||||||||||||||||||
-4 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. | |||||||||||||||||||||||||||||||
-5 | Trading liabilities are presented within other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||||||||||
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | Impact of | ||||||||||||||||||||||||||||||
Increase in Input | ||||||||||||||||||||||||||||||||
on Estimated | ||||||||||||||||||||||||||||||||
Valuation Techniques | Significant Unobservable Inputs | Range | Weighted | Range | Weighted | Fair Value (2) | ||||||||||||||||||||||||||
Average (1) | Average (1) | |||||||||||||||||||||||||||||||
Fixed maturity securities (3) | ||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | • | Matrix pricing | • | Delta spread adjustments (4) | -40 | - | 240 | 39 | -10 | - | 240 | 38 | Decrease | |||||||||||||||||||
• | Offered quotes (5) | 64 | - | 130 | 96 | 4 | - | 104 | 100 | Increase | ||||||||||||||||||||||
• | Market pricing | • | Quoted prices (5) | — | - | 590 | 126 | — | - | 277 | 122 | Increase | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 98 | - | 126 | 101 | 33 | - | 140 | 98 | Increase | ||||||||||||||||||||
RMBS | • | Market pricing | • | Quoted prices (5) | 22 | - | 120 | 97 | 22 | - | 100 | 98 | Increase (6) | |||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 1 | - | 118 | 93 | 69 | - | 101 | 93 | Increase (6) | ||||||||||||||||||||
ABS | • | Market pricing | • | Quoted prices (5) | 15 | - | 110 | 100 | — | - | 106 | 101 | Increase (6) | |||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 56 | - | 106 | 98 | 56 | - | 106 | 98 | Increase (6) | ||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Interest rate | • | Present value techniques | • | Swap yield (7) | 290 | - | 290 | 401 | - | 450 | Increase (11) | |||||||||||||||||||||
Foreign currency exchange rate | • | Present value techniques | • | Swap yield (7) | — | - | — | 580 | - | 767 | Increase (11) | |||||||||||||||||||||
• | Correlation (8) | 40% | - | 55% | 38% | - | 47% | |||||||||||||||||||||||||
Credit | • | Present value techniques | • | Credit spreads (9) | 98 | - | 100 | 98 | - | 101 | Decrease (9) | |||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (10) | |||||||||||||||||||||||||||||
Equity market | • | Present value techniques or option pricing models | • | Volatility (12) | 15% | - | 27% | — | - | — | Increase (11) | |||||||||||||||||||||
• | Correlation (8) | 70% | - | 70% | — | - | — | |||||||||||||||||||||||||
Embedded derivatives | ||||||||||||||||||||||||||||||||
Direct and ceded guaranteed minimum benefits | • | Option pricing techniques | • | Mortality rates: | ||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.10% | 0% | - | 0.10% | Decrease (13) | |||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.65% | 0.04% | - | 0.65% | Decrease (13) | |||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (13) | |||||||||||||||||||||||||
• | Lapse rates: | |||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (14) | |||||||||||||||||||||||||
Durations 11 - 20 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | |||||||||||||||||||||||||
Durations 21 - 116 | 3% | - | 100% | 3% | - | 100% | Decrease (14) | |||||||||||||||||||||||||
• | Utilization rates | 20% | - | 50% | 20% | - | 50% | Increase (15) | ||||||||||||||||||||||||
• | Withdrawal rates | 0.07% | - | 10% | 0.07% | - | 10% | -16 | ||||||||||||||||||||||||
• | Long-term equity volatilities | 17.40% | - | 25% | 17.40% | - | 25% | Increase (17) | ||||||||||||||||||||||||
• | Nonperformance risk spread | 0.03% | - | 0.46% | 0.03% | - | 0.44% | Decrease (18) | ||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. | |||||||||||||||||||||||||||||||
-2 | The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. | |||||||||||||||||||||||||||||||
-3 | Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. | |||||||||||||||||||||||||||||||
-4 | Range and weighted average are presented in basis points. | |||||||||||||||||||||||||||||||
-5 | Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. | |||||||||||||||||||||||||||||||
-6 | Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. | |||||||||||||||||||||||||||||||
-7 | Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | |||||||||||||||||||||||||||||||
-8 | Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. | |||||||||||||||||||||||||||||||
-9 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | |||||||||||||||||||||||||||||||
-10 | At both December 31, 2014 and 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. | |||||||||||||||||||||||||||||||
-11 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | |||||||||||||||||||||||||||||||
-12 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | |||||||||||||||||||||||||||||||
-13 | Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-14 | Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-15 | The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-16 | The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. | |||||||||||||||||||||||||||||||
-17 | Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-18 | Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | Impact of | ||||||||||||||||||||||||||||||
Increase in Input | ||||||||||||||||||||||||||||||||
on Estimated | ||||||||||||||||||||||||||||||||
Valuation Techniques | Significant Unobservable Inputs | Range | Weighted | Range | Weighted | Fair Value (2) | ||||||||||||||||||||||||||
Average (1) | Average (1) | |||||||||||||||||||||||||||||||
Fixed maturity securities (3) | ||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | • | Matrix pricing | • | Delta spread adjustments (4) | -40 | - | 240 | 39 | -10 | - | 240 | 38 | Decrease | |||||||||||||||||||
• | Offered quotes (5) | 64 | - | 130 | 96 | 4 | - | 104 | 100 | Increase | ||||||||||||||||||||||
• | Market pricing | • | Quoted prices (5) | — | - | 590 | 126 | — | - | 277 | 122 | Increase | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 98 | - | 126 | 101 | 33 | - | 140 | 98 | Increase | ||||||||||||||||||||
RMBS | • | Market pricing | • | Quoted prices (5) | 22 | - | 120 | 97 | 22 | - | 100 | 98 | Increase (6) | |||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 1 | - | 118 | 93 | 69 | - | 101 | 93 | Increase (6) | ||||||||||||||||||||
ABS | • | Market pricing | • | Quoted prices (5) | 15 | - | 110 | 100 | — | - | 106 | 101 | Increase (6) | |||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 56 | - | 106 | 98 | 56 | - | 106 | 98 | Increase (6) | ||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
Interest rate | • | Present value techniques | • | Swap yield (7) | 290 | - | 290 | 401 | - | 450 | Increase (11) | |||||||||||||||||||||
Foreign currency exchange rate | • | Present value techniques | • | Swap yield (7) | — | - | — | 580 | - | 767 | Increase (11) | |||||||||||||||||||||
• | Correlation (8) | 40% | - | 55% | 38% | - | 47% | |||||||||||||||||||||||||
Credit | • | Present value techniques | • | Credit spreads (9) | 98 | - | 100 | 98 | - | 101 | Decrease (9) | |||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (10) | |||||||||||||||||||||||||||||
Equity market | • | Present value techniques or option pricing models | • | Volatility (12) | 15% | - | 27% | — | - | — | Increase (11) | |||||||||||||||||||||
• | Correlation (8) | 70% | - | 70% | — | - | — | |||||||||||||||||||||||||
Embedded derivatives | ||||||||||||||||||||||||||||||||
Direct and ceded guaranteed minimum benefits | • | Option pricing techniques | • | Mortality rates: | ||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.10% | 0% | - | 0.10% | Decrease (13) | |||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.65% | 0.04% | - | 0.65% | Decrease (13) | |||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (13) | |||||||||||||||||||||||||
• | Lapse rates: | |||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (14) | |||||||||||||||||||||||||
Durations 11 - 20 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | |||||||||||||||||||||||||
Durations 21 - 116 | 3% | - | 100% | 3% | - | 100% | Decrease (14) | |||||||||||||||||||||||||
• | Utilization rates | 20% | - | 50% | 20% | - | 50% | Increase (15) | ||||||||||||||||||||||||
• | Withdrawal rates | 0.07% | - | 10% | 0.07% | - | 10% | -16 | ||||||||||||||||||||||||
• | Long-term equity volatilities | 17.40% | - | 25% | 17.40% | - | 25% | Increase (17) | ||||||||||||||||||||||||
• | Nonperformance risk spread | 0.03% | - | 0.46% | 0.03% | - | 0.44% | Decrease (18) | ||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. | |||||||||||||||||||||||||||||||
-2 | The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. | |||||||||||||||||||||||||||||||
-3 | Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. | |||||||||||||||||||||||||||||||
-4 | Range and weighted average are presented in basis points. | |||||||||||||||||||||||||||||||
-5 | Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. | |||||||||||||||||||||||||||||||
-6 | Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. | |||||||||||||||||||||||||||||||
-7 | Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | |||||||||||||||||||||||||||||||
-8 | Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. | |||||||||||||||||||||||||||||||
-9 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | |||||||||||||||||||||||||||||||
-10 | At both December 31, 2014 and 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. | |||||||||||||||||||||||||||||||
-11 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | |||||||||||||||||||||||||||||||
-12 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | |||||||||||||||||||||||||||||||
-13 | Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-14 | Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-15 | The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-16 | The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. | |||||||||||||||||||||||||||||||
-17 | Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
-18 | Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. | |||||||||||||||||||||||||||||||
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. | U.S. | Foreign | RMBS | ABS | CMBS | Foreign | ||||||||||||||||||||||||||
Corporate | Treasury | Corporate | Government | |||||||||||||||||||||||||||||
and Agency | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 5,269 | $ | 62 | $ | 3,198 | $ | 2,513 | $ | 2,526 | $ | 430 | $ | 274 | ||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | 3 | — | 2 | 42 | 6 | (1 | ) | — | ||||||||||||||||||||||||
Net investment gains (losses) | (6 | ) | — | (4 | ) | 5 | (40 | ) | — | (49 | ) | |||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 274 | — | (56 | ) | 67 | 35 | 1 | 22 | ||||||||||||||||||||||||
Purchases (3) | 1,027 | — | 736 | 1,528 | 1,029 | 183 | — | |||||||||||||||||||||||||
Sales (3) | (925 | ) | — | (229 | ) | (542 | ) | (725 | ) | (39 | ) | (115 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 87 | — | 119 | 45 | 34 | 5 | 70 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (792 | ) | (62 | ) | (175 | ) | (29 | ) | (1,373 | ) | (130 | ) | — | |||||||||||||||||||
Balance at December 31, | $ | 4,937 | $ | — | $ | 3,591 | $ | 3,629 | $ | 1,492 | $ | 449 | $ | 202 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | 2 | $ | 43 | $ | 1 | $ | (1 | ) | $ | 1 | |||||||||||||||||
Net investment gains (losses) | $ | (6 | ) | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities | Trading and FVO Securities | |||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO Securities | Short-term | Residential | Separate | |||||||||||||||||||||||||
Stock | redeemable | Traded | General | Held by CSEs | Investments | Mortgage | Account | |||||||||||||||||||||||||
Preferred | Securities | Account | Loans - FVO | Assets (6) | ||||||||||||||||||||||||||||
Stock | Securities | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 50 | $ | 278 | $ | 12 | $ | 14 | $ | — | $ | 175 | $ | 338 | $ | 1,209 | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | 1 | 20 | — | ||||||||||||||||||||||||
Net investment gains (losses) | 4 | 3 | — | — | — | (2 | ) | — | 102 | |||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
OCI | — | 2 | — | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | 19 | — | 5 | — | — | 230 | 124 | 527 | ||||||||||||||||||||||||
Sales (3) | (21 | ) | (38 | ) | (7 | ) | — | (1 | ) | (156 | ) | (120 | ) | (376 | ) | |||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | 81 | ||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | (54 | ) | (28 | ) | ||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | 13 | — | — | 144 | ||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | (82 | ) | (5 | ) | — | — | (18 | ) | — | (44 | ) | ||||||||||||||||||||
Balance at December 31, | $ | 52 | $ | 163 | $ | 5 | $ | 14 | $ | 12 | $ | 230 | $ | 308 | $ | 1,615 | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | — | $ | — | 20 | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | (2 | ) | $ | (3 | ) | $ | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives (7) | ||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Long-term | Long-term | ||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Debt | Debt of | |||||||||||||||||||||||||||
Exchange | Derivatives (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | (1 | ) | $ | 14 | $ | 23 | $ | — | $ | 48 | $ | (43 | ) | $ | (28 | ) | |||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||||||||
Net derivative gains (losses) | — | (6 | ) | (7 | ) | 14 | (144 | ) | — | — | ||||||||||||||||||||||
OCI | 40 | — | — | — | — | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | 111 | — | — | — | |||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (4 | ) | (155 | ) | — | (30 | ) | — | ||||||||||||||||||||||
Settlements (3) | (22 | ) | (1 | ) | — | — | 29 | 20 | 16 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | 18 | — | |||||||||||||||||||||||||
Balance at December 31, | $ | 17 | $ | 7 | $ | 12 | $ | (30 | ) | $ | (67 | ) | $ | (35 | ) | $ | (13 | ) | ||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | (6 | ) | $ | — | $ | 14 | $ | (115 | ) | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. | U.S. | Foreign | RMBS | ABS | CMBS | Foreign | ||||||||||||||||||||||||||
Corporate | Treasury | Corporate | Government | |||||||||||||||||||||||||||||
and Agency | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 5,460 | $ | 71 | $ | 3,054 | $ | 1,702 | $ | 1,923 | $ | 402 | $ | 282 | ||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | 2 | — | 1 | 30 | — | (1 | ) | 4 | ||||||||||||||||||||||||
Net investment gains (losses) | (37 | ) | — | (22 | ) | (2 | ) | 4 | — | 2 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | (36 | ) | (3 | ) | 3 | 140 | (27 | ) | 2 | (45 | ) | |||||||||||||||||||||
Purchases (3) | 1,188 | — | 842 | 1,001 | 1,133 | 221 | 69 | |||||||||||||||||||||||||
Sales (3) | (862 | ) | (6 | ) | (646 | ) | (328 | ) | (429 | ) | (66 | ) | (37 | ) | ||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 717 | — | 250 | 41 | 1 | 74 | 1 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (1,163 | ) | — | (284 | ) | (71 | ) | (79 | ) | (202 | ) | (2 | ) | |||||||||||||||||||
Balance at December 31, | $ | 5,269 | $ | 62 | $ | 3,198 | $ | 2,513 | $ | 2,526 | $ | 430 | $ | 274 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | 1 | $ | — | $ | — | $ | 35 | $ | — | $ | (1 | ) | $ | 4 | |||||||||||||||||
Net investment gains (losses) | $ | (40 | ) | $ | — | $ | — | $ | (3 | ) | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities | Trading and FVO Securities | |||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO Securities | Short-term | Residential | Separate | |||||||||||||||||||||||||
Stock | redeemable | Traded | General | Held by CSEs | Investments | Mortgage | Account | |||||||||||||||||||||||||
Preferred | Securities | Account | Loans - FVO | Assets (6) | ||||||||||||||||||||||||||||
Stock | Securities | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 60 | $ | 281 | $ | 6 | $ | 26 | $ | — | $ | 252 | $ | — | $ | 940 | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | 5 | — | — | 1 | — | ||||||||||||||||||||||||
Net investment gains (losses) | 20 | (30 | ) | — | 6 | — | (23 | ) | — | 42 | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
OCI | (5 | ) | 84 | — | — | — | 19 | — | — | |||||||||||||||||||||||
Purchases (3) | 5 | 17 | 9 | — | — | 174 | 339 | 185 | ||||||||||||||||||||||||
Sales (3) | (31 | ) | (74 | ) | — | (23 | ) | — | (247 | ) | (2 | ) | (204 | ) | ||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | 72 | ||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Transfers into Level 3 (4) | 1 | — | — | — | — | — | — | 236 | ||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | (3 | ) | — | — | — | — | (62 | ) | ||||||||||||||||||||||
Balance at December 31, | $ | 50 | $ | 278 | $ | 12 | $ | 14 | $ | — | $ | 175 | $ | 338 | $ | 1,209 | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||
Net investment gains (losses) | $ | — | $ | (17 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives (7) | ||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Long-term | Long-term | ||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Debt | Debt of | |||||||||||||||||||||||||||
Exchange | Derivatives (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 58 | $ | 37 | $ | 33 | $ | — | $ | (109 | ) | $ | — | $ | (44 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | (2 | ) | ||||||||||||||||||||||||
Net derivative gains (losses) | (3 | ) | (24 | ) | (8 | ) | — | 102 | — | — | ||||||||||||||||||||||
OCI | (44 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (1 | ) | — | — | (43 | ) | — | |||||||||||||||||||||||
Settlements (3) | (12 | ) | 1 | (1 | ) | — | 55 | — | 18 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balance at December 31, | $ | (1 | ) | $ | 14 | $ | 23 | $ | — | $ | 48 | $ | (43 | ) | $ | (28 | ) | |||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | (24 | ) | $ | (5 | ) | $ | — | $ | 115 | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||
U.S. | U.S. | Foreign | RMBS | ABS | CMBS | Foreign | ||||||||||||||||||||||||||
Corporate | Treasury | Corporate | Government | |||||||||||||||||||||||||||||
and Agency | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 4,919 | $ | 25 | $ | 2,258 | $ | 691 | $ | 1,146 | $ | 219 | $ | 291 | ||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | 7 | — | 6 | 27 | 1 | — | 5 | |||||||||||||||||||||||||
Net investment gains (losses) | (2 | ) | — | (52 | ) | (5 | ) | (1 | ) | (7 | ) | (5 | ) | |||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 173 | — | 142 | 220 | (3 | ) | (3 | ) | 19 | |||||||||||||||||||||||
Purchases (3) | 1,282 | 47 | 1,213 | 892 | 953 | 268 | 2 | |||||||||||||||||||||||||
Sales (3) | (848 | ) | (1 | ) | (489 | ) | (242 | ) | (157 | ) | (167 | ) | (55 | ) | ||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 559 | — | 99 | 131 | 4 | 104 | 25 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (630 | ) | — | (123 | ) | (12 | ) | (20 | ) | (12 | ) | — | ||||||||||||||||||||
Balance at December 31, | $ | 5,460 | $ | 71 | $ | 3,054 | $ | 1,702 | $ | 1,923 | $ | 402 | $ | 282 | ||||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | 4 | $ | — | $ | 5 | $ | 27 | $ | 1 | $ | — | $ | 5 | ||||||||||||||||||
Net investment gains (losses) | $ | (3 | ) | $ | — | $ | (13 | ) | $ | (2 | ) | $ | — | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities | Trading and FVO Securities | |||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO Securities | Short-term | Residential | Separate | |||||||||||||||||||||||||
Stock | redeemable | Traded | General | Held by CSEs | Investments | Mortgage | Account | |||||||||||||||||||||||||
Preferred | Securities | Account | Loans - FVO | Assets (6) | ||||||||||||||||||||||||||||
Stock | Securities | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 104 | $ | 293 | $ | — | $ | 14 | $ | — | $ | 134 | $ | — | $ | 1,082 | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | 12 | — | — | — | — | ||||||||||||||||||||||||
Net investment gains (losses) | 7 | (1 | ) | — | — | — | — | — | 84 | |||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
OCI | (7 | ) | 16 | — | — | — | (19 | ) | — | — | ||||||||||||||||||||||
Purchases (3) | 10 | 5 | 6 | — | — | 246 | — | 171 | ||||||||||||||||||||||||
Sales (3) | (24 | ) | (32 | ) | — | — | — | (106 | ) | — | (379 | ) | ||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | 2 | ||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||
Transfers into Level 3 (4) | 1 | — | — | — | — | 5 | — | 24 | ||||||||||||||||||||||||
Transfers out of Level 3 (4) | (31 | ) | — | — | — | — | (8 | ) | — | (43 | ) | |||||||||||||||||||||
Balance at December 31, | $ | 60 | $ | 281 | $ | 6 | $ | 26 | $ | — | $ | 252 | $ | — | $ | 940 | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net investment gains (losses) | $ | (4 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives (7) | ||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Long-term | Long-term | ||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Debt | Debt of | |||||||||||||||||||||||||||
Exchange | Derivatives (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 67 | $ | 56 | $ | 1 | $ | — | $ | (790 | ) | $ | — | $ | (116 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in: | ||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | ||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | (7 | ) | ||||||||||||||||||||||||
Net derivative gains (losses) | 17 | (19 | ) | 38 | — | 629 | — | — | ||||||||||||||||||||||||
OCI | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (3 | ) | — | — | — | — | ||||||||||||||||||||||||
Settlements (3) | (25 | ) | — | (3 | ) | — | 52 | — | 79 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balance at December 31, | $ | 58 | $ | 37 | $ | 33 | $ | — | $ | (109 | ) | $ | — | $ | (44 | ) | ||||||||||||||||
Changes in unrealized gains (losses) | ||||||||||||||||||||||||||||||||
included in net income (loss): (5) | ||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (7 | ) | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | (19 | ) | $ | 36 | $ | — | $ | 636 | $ | — | $ | — | |||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of mortgage loans - FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). | |||||||||||||||||||||||||||||||
-2 | Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. | |||||||||||||||||||||||||||||||
-3 | Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. | |||||||||||||||||||||||||||||||
-4 | Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. | |||||||||||||||||||||||||||||||
-5 | Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. | |||||||||||||||||||||||||||||||
-6 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses). | |||||||||||||||||||||||||||||||
-7 | Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. | |||||||||||||||||||||||||||||||
-8 | Embedded derivative assets and liabilities are presented net for purposes of the rollforward. | |||||||||||||||||||||||||||||||
Fair Value Option | The following table presents information for residential mortgage loans, which are accounted for under the FVO, and were initially measured at fair value. | |||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 436 | $ | 508 | ||||||||||||||||||||||||||||
Difference between estimated fair value and unpaid principal balance | (128 | ) | (170 | ) | ||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 308 | $ | 338 | ||||||||||||||||||||||||||||
Loans in non-accrual status | $ | 125 | $ | — | ||||||||||||||||||||||||||||
The following table presents information for long-term debt, which is accounted for under the FVO, and was initially measured at fair value. | ||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt of CSEs | |||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Contractual principal balance | $ | 115 | $ | 123 | $ | 26 | $ | 42 | ||||||||||||||||||||||||
Difference between estimated fair value and contractual principal balance | 2 | (1 | ) | (13 | ) | (14 | ) | |||||||||||||||||||||||||
Carrying value at estimated fair value (1) | $ | 117 | $ | 122 | $ | 13 | $ | 28 | ||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
-1 | Changes in estimated fair value are recognized in net investment gains (losses). Interest expense is recognized in other expenses. | |||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||||||||
At December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Carrying Value After Measurement | Gains (Losses) | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Mortgage loans, net (1) | $ | 94 | $ | 175 | $ | 361 | $ | 2 | $ | 24 | $ | (16 | ) | |||||||||||||||||||
Other limited partnership interests (2) | $ | 109 | $ | 71 | $ | 48 | $ | (70 | ) | $ | (40 | ) | $ | (30 | ) | |||||||||||||||||
Goodwill (3) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (10 | ) | |||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||
-1 | Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. | |||||||||||||||||||||||||||||||
-2 | For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both December 31, 2014 and 2013 were not significant. | |||||||||||||||||||||||||||||||
-3 | As discussed in Note 11, in 2012, the Company recorded an impairment of goodwill associated with the Retail Annuities reporting unit. This impairment has been categorized as Level 3 due to the significant unobservable inputs used in the determination of the estimated fair value. | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: | |||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Value | Estimated | |||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 48,751 | $ | — | $ | — | $ | 50,992 | $ | 50,992 | ||||||||||||||||||||||
Policy loans | $ | 8,491 | $ | — | $ | 796 | $ | 9,614 | $ | 10,410 | ||||||||||||||||||||||
Real estate joint ventures | $ | 30 | $ | — | $ | — | $ | 54 | $ | 54 | ||||||||||||||||||||||
Other limited partnership interests | $ | 635 | $ | — | $ | — | $ | 819 | $ | 819 | ||||||||||||||||||||||
Other invested assets | $ | 2,385 | $ | — | $ | 2,270 | $ | 220 | $ | 2,490 | ||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 13,845 | $ | — | $ | 94 | $ | 14,607 | $ | 14,701 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
PABs | $ | 73,225 | $ | — | $ | — | $ | 75,481 | $ | 75,481 | ||||||||||||||||||||||
Long-term debt | $ | 1,897 | $ | — | $ | 2,029 | $ | 268 | $ | 2,297 | ||||||||||||||||||||||
Other liabilities | $ | 20,139 | $ | — | $ | 609 | $ | 20,133 | $ | 20,742 | ||||||||||||||||||||||
Separate account liabilities | $ | 60,840 | $ | — | $ | 60,840 | $ | — | $ | 60,840 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Value | Estimated | |||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 45,686 | $ | — | $ | — | $ | 47,369 | $ | 47,369 | ||||||||||||||||||||||
Policy loans | $ | 8,421 | $ | — | $ | 786 | $ | 8,767 | $ | 9,553 | ||||||||||||||||||||||
Real estate joint ventures | $ | 47 | $ | — | $ | — | $ | 70 | $ | 70 | ||||||||||||||||||||||
Other limited partnership interests | $ | 865 | $ | — | $ | — | $ | 1,013 | $ | 1,013 | ||||||||||||||||||||||
Other invested assets | $ | 2,017 | $ | 87 | $ | 1,752 | $ | 176 | $ | 2,015 | ||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 14,210 | $ | — | $ | 15 | $ | 14,906 | $ | 14,921 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
PABs | $ | 70,205 | $ | — | $ | — | $ | 72,236 | $ | 72,236 | ||||||||||||||||||||||
Long-term debt | $ | 2,655 | $ | — | $ | 2,956 | $ | — | $ | 2,956 | ||||||||||||||||||||||
Other liabilities | $ | 19,601 | $ | — | $ | 310 | $ | 19,787 | $ | 20,097 | ||||||||||||||||||||||
Separate account liabilities | $ | 57,935 | $ | — | $ | 57,935 | $ | — | $ | 57,935 | ||||||||||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill Rollforward and by Segment | Information regarding goodwill by segment, as well as Corporate & Other, was as follows: | |||||||||||||||||||
Retail | Group, | Corporate | Corporate | Total | ||||||||||||||||
Voluntary & | Benefit | & Other | ||||||||||||||||||
Worksite | Funding | |||||||||||||||||||
Benefits | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at January 1, 2012 | ||||||||||||||||||||
Goodwill | $ | 37 | $ | 68 | $ | 2 | $ | 4 | $ | 111 | ||||||||||
Accumulated impairment | — | — | — | — | — | |||||||||||||||
Total goodwill, net | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Impairments (1) | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Balance at December 31, 2012 | ||||||||||||||||||||
Goodwill | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Accumulated impairment | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Total goodwill, net | 27 | 68 | 2 | 4 | 101 | |||||||||||||||
Balance at December 31, 2013 | ||||||||||||||||||||
Goodwill | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Accumulated impairment | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Total goodwill, net | 27 | 68 | 2 | 4 | 101 | |||||||||||||||
Balance at December 31, 2014 | ||||||||||||||||||||
Goodwill | 37 | 68 | 2 | 4 | 111 | |||||||||||||||
Accumulated impairment | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Total goodwill, net | $ | 27 | $ | 68 | $ | 2 | $ | 4 | $ | 101 | ||||||||||
______________ | ||||||||||||||||||||
-1 | For the year ended December 31, 2012, a non-cash charge of $10 million, which had no impact on income taxes, was recorded in other expenses for the impairment of the entire goodwill balance for the Retail Annuities reporting unit. |
Longterm_and_Shortterm_Debt_Ta
Long-term and Short-term Debt (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||
Long-term and Short-term debt outstanding | Long-term and short-term debt outstanding was as follows: | ||||||||||||||||||
Interest Rates (1) | Maturity | December 31, | |||||||||||||||||
Range | Weighted | 2014 | 2013 | ||||||||||||||||
Average | |||||||||||||||||||
(In millions) | |||||||||||||||||||
Surplus notes - affiliated | 3.00% - 7.38% | 6.49% | 2015 - 2037 | $ | 883 | $ | 1,100 | ||||||||||||
Surplus notes | 7.63% - 7.88% | 7.83% | 2015 - 2025 | 701 | 701 | ||||||||||||||
Mortgage loans - affiliated | 2.11% - 7.26% | 5.21% | 2015 - 2020 | 242 | 364 | ||||||||||||||
Senior notes - affiliated (2) | 0.92% - 2.75% | 1.97% | 2021 - 2022 | 78 | 79 | ||||||||||||||
Other notes (3) | 1.34% - 8.00% | 3.34% | 2015 - 2027 | 110 | 533 | ||||||||||||||
Capital lease obligations | — | 23 | |||||||||||||||||
Total long-term debt (4) | 2,014 | 2,800 | |||||||||||||||||
Total short-term debt | 100 | 175 | |||||||||||||||||
Total | $ | 2,114 | $ | 2,975 | |||||||||||||||
______________ | |||||||||||||||||||
-1 | Range of interest rates and weighted average interest rates are for the year ended December 31, 2014. | ||||||||||||||||||
-2 | During 2012, a consolidated VIE issued $80 million of long-term debt to an affiliate. See Note 8. | ||||||||||||||||||
-3 | At December 31, 2013, the Company consolidated the MetLife Core Property Fund. During 2013, this consolidated VIE issued $373 million of long-term debt. The Company no longer consolidated the fund effective March 31, 2014. See Note 8. | ||||||||||||||||||
-4 | Excludes $13 million and $28 million of long-term debt relating to CSEs at December 31, 2014 and 2013, respectively. See Note 8. | ||||||||||||||||||
Schedule of Short-term Debt | Short-term debt with maturities of one year or less was as follows: | ||||||||||||||||||
December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Commercial paper | $ | 100 | $ | 175 | |||||||||||||||
Average daily balance | $ | 109 | $ | 103 | |||||||||||||||
Average days outstanding | 69 days | 55 days | |||||||||||||||||
Schedule of Line of Credit Facilities | Information on the credit facility at December 31, 2014 was as follows: | ||||||||||||||||||
Borrower(s) | Expiration | Maximum Capacity | Letters of | Drawdowns | Unused Commitments | ||||||||||||||
Credit | |||||||||||||||||||
Issued (1) | |||||||||||||||||||
(In millions) | |||||||||||||||||||
MetLife, Inc. and MetLife Funding, Inc. | May 2019 (2) | $ | 4,000 | $ | 684 | $ | — | $ | 3,316 | ||||||||||
______________ | |||||||||||||||||||
-1 | MetLife, Inc. and MetLife Funding, a wholly owned subsidiary of Metropolitan Life Insurance Company, are severally liable for their respective obligations under such unsecured credit facility. MetLife Funding is not an applicant under letters of credit outstanding as of December 31, 2014 and is not responsible for any reimbursement obligations under such letters of credit. | ||||||||||||||||||
-2 | In May 2014, MetLife, Inc. and MetLife Funding entered into a $4.0 billion five-year unsecured credit agreement, which amended and restated both the five-year $3.0 billion and the five-year $1.0 billion unsecured credit agreements in their entireties into a single agreement (the “2014 Five-Year Credit Agreement”). The credit facility made available by the 2014 Five-Year Credit Agreement may be used for general corporate purposes (including in the case of loans, to back up commercial paper and, in the case of letters of credit, to support variable annuity policy and reinsurance reserve requirements). All borrowings under the 2014 Five-Year Credit Agreement must be repaid by May 30, 2019, except that letters of credit outstanding on that date may remain outstanding until no later than May 30, 2020. The Company incurred costs of $3 million related to the 2014 Five-Year Credit Agreement, which were capitalized and included in other assets. These costs are being amortized over the remaining term of the 2014 Five-Year Credit Agreement. | ||||||||||||||||||
Committed Facilities | The committed facility is used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees expensed associated with this committed facility were $4 million, $3 million and $3 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in other expenses. Information on the committed facility at December 31, 2014 was as follows: | ||||||||||||||||||
Account Party/Borrower(s) | Expiration | Maximum Capacity | Letters of | Drawdowns | Unused | ||||||||||||||
Credit | Commitments | ||||||||||||||||||
Issued (1) | |||||||||||||||||||
(In millions) | |||||||||||||||||||
MetLife, Inc. & Missouri Reinsurance, Inc. | June 2016 (2) | $ | 490 | $ | 490 | $ | — | $ | — | ||||||||||
______________ | |||||||||||||||||||
-1 | Missouri Reinsurance, Inc., a subsidiary of Metropolitan Life Insurance Company, had outstanding $490 million in letters of credit at December 31, 2014. | ||||||||||||||||||
-2 | Commencing in December 2015 and extending through March 2016, the capacity will grade down from $490 million to $200 million. |
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | The following table summarizes the two schedules of strengthening: | |||||||||||||||||||
2013 Schedule | 2014 Schedule | Combined Schedule | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
2013 Strengthening | $300 | N/A | $300 | |||||||||||||||||
2014 Strengthening | $200 | $100 | $300 | |||||||||||||||||
2015 Strengthening (1) | $100 | $100 | $200 | |||||||||||||||||
2016 Strengthening (1) | N/A | $100 | $100 | |||||||||||||||||
______________ | ||||||||||||||||||||
-1 | The actual 2015 and 2016 amounts may differ from those originally estimated in 2013 and 2014 due to changes in economic conditions, regulations, or policyholder behavior. | |||||||||||||||||||
Statutory capital and surplus was as follows at: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
Company | 2014 | 2013 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Metropolitan Life Insurance Company | $ | 12,008 | $ | 12,428 | ||||||||||||||||
New England Life Insurance Company | $ | 675 | $ | 571 | ||||||||||||||||
General American Life Insurance Company | $ | 867 | $ | 818 | ||||||||||||||||
Statutory net income (loss) was as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Company | State of Domicile | 2014 | 2013 | 2012 | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Metropolitan Life Insurance Company | New York | $ | 1,487 | $ | 369 | $ | 1,320 | |||||||||||||
New England Life Insurance Company | Massachusetts | $ | 303 | $ | 103 | $ | 79 | |||||||||||||
General American Life Insurance Company | Missouri | $ | 129 | $ | 60 | $ | 19 | |||||||||||||
The table below sets forth the dividends permitted to be paid by Metropolitan Life Insurance Company’s insurance subsidiaries without regulatory approval and dividends paid: | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Company | Permitted Without | Paid (2) | Paid (2) | |||||||||||||||||
Approval (1) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
New England Life Insurance Company | $ | 199 | $ | 227 | -3 | $ | 77 | |||||||||||||
General American Life Insurance Company | $ | 88 | $ | — | $ | — | ||||||||||||||
______________ | ||||||||||||||||||||
-1 | Reflects dividend amounts that may be paid during 2015 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over a rolling 12-month period, if paid before a specified date during 2015, some or all of such dividends may require regulatory approval. | |||||||||||||||||||
-2 | Includes all amounts paid, including those requiring regulatory approval. | |||||||||||||||||||
-3 | During December 2014, New England Life Insurance Company (“NELICO”) distributed shares of an affiliate to Metropolitan Life Insurance Company as an extraordinary in-kind dividend of $113 million, as calculated on a statutory basis. Also during December 2014, NELICO paid an extraordinary cash dividend to Metropolitan Life Insurance Company in the amount of $114 million. | |||||||||||||||||||
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary | The table below sets forth dividends permitted to be paid by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and dividends paid: | |||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Company | Permitted Without | Paid (1) | Paid (1) | |||||||||||||||||
Approval | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Metropolitan Life Insurance Company | $ | 1,200 | $ | 821 | -2 | $ | 1,428 | |||||||||||||
______________ | ||||||||||||||||||||
-1 | Includes all amounts paid, including those requiring regulatory approval. | |||||||||||||||||||
-2 | During December 2014, Metropolitan Life Insurance Company distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of $113 million, as calculated on a statutory basis. | |||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company, net of income tax, was as follows: | |||||||||||||||||||
Unrealized | Unrealized Gains (Losses) | Foreign Currency | Defined | Total | ||||||||||||||||
Investment Gains | on Derivatives | Translation | Benefit | |||||||||||||||||
(Losses), Net of | Adjustments | Plans | ||||||||||||||||||
Related Offsets (1) | Adjustment | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance at December 31, 2011 | $ | 4,028 | $ | 840 | $ | 37 | $ | (1,851 | ) | $ | 3,054 | |||||||||
OCI before reclassifications | 2,406 | (243 | ) | (30 | ) | (618 | ) | 1,515 | ||||||||||||
Deferred income tax benefit (expense) | (843 | ) | 87 | 11 | 217 | (528 | ) | |||||||||||||
OCI before reclassifications, net of income tax | 5,591 | 684 | 18 | (2,252 | ) | 4,041 | ||||||||||||||
Amounts reclassified from AOCI | 96 | 2 | — | (148 | ) | (50 | ) | |||||||||||||
Deferred income tax benefit (expense) | (33 | ) | (1 | ) | — | 51 | 17 | |||||||||||||
Amounts reclassified from AOCI, net of income tax | 63 | 1 | — | (97 | ) | (33 | ) | |||||||||||||
Balance at December 31, 2012 | 5,654 | 685 | 18 | (2,349 | ) | 4,008 | ||||||||||||||
OCI before reclassifications | (3,321 | ) | (677 | ) | 22 | 1,396 | (2,580 | ) | ||||||||||||
Deferred income tax benefit (expense) | 1,145 | 237 | (9 | ) | (490 | ) | 883 | |||||||||||||
OCI before reclassifications, net of income tax | 3,478 | 245 | 31 | (1,443 | ) | 2,311 | ||||||||||||||
Amounts reclassified from AOCI | (16 | ) | (14 | ) | — | (205 | ) | (235 | ) | |||||||||||
Deferred income tax benefit (expense) | 6 | 5 | — | 71 | 82 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (10 | ) | (9 | ) | — | (134 | ) | (153 | ) | |||||||||||
Balance at December 31, 2013 | 3,468 | 236 | 31 | (1,577 | ) | 2,158 | ||||||||||||||
OCI before reclassifications | 4,095 | 606 | (44 | ) | (1,181 | ) | 3,476 | |||||||||||||
Deferred income tax benefit (expense) | (1,409 | ) | (212 | ) | 10 | 406 | (1,205 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 6,154 | 630 | (3 | ) | (2,352 | ) | 4,429 | |||||||||||||
Amounts reclassified from AOCI | 70 | 682 | — | 180 | 932 | |||||||||||||||
Deferred income tax benefit (expense) | (24 | ) | (239 | ) | — | (64 | ) | (327 | ) | |||||||||||
Amounts reclassified from AOCI, net of income tax | 46 | 443 | — | 116 | 605 | |||||||||||||||
Balance at December 31, 2014 | $ | 6,200 | $ | 1,073 | $ | (3 | ) | $ | (2,236 | ) | $ | 5,034 | ||||||||
__________________ | ||||||||||||||||||||
-1 | See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI, was as follows: | |||||||||||||||||||
AOCI Components | Amounts Reclassified from AOCI | Consolidated Statement of Operations and | ||||||||||||||||||
Comprehensive Income (Loss) Locations | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net unrealized investment gains (losses): | ||||||||||||||||||||
Net unrealized investment gains (losses) | $ | (103 | ) | $ | (9 | ) | $ | (136 | ) | Net investment gains (losses) | ||||||||||
Net unrealized investment gains (losses) | 40 | 53 | 56 | Net investment income | ||||||||||||||||
Net unrealized investment gains (losses) | (7 | ) | (28 | ) | (16 | ) | Net derivative gains (losses) | |||||||||||||
Net unrealized investment gains (losses), before income tax | (70 | ) | 16 | (96 | ) | |||||||||||||||
Income tax (expense) benefit | 24 | (6 | ) | 33 | ||||||||||||||||
Net unrealized investment gains (losses), net of income tax | $ | (46 | ) | $ | 10 | $ | (63 | ) | ||||||||||||
Unrealized gains (losses) on derivatives - cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | $ | 41 | $ | 20 | $ | 3 | Net derivative gains (losses) | |||||||||||||
Interest rate swaps | 9 | 8 | 4 | Net investment income | ||||||||||||||||
Interest rate forwards | (8 | ) | 1 | — | Net derivative gains (losses) | |||||||||||||||
Interest rate forwards | 2 | 2 | 2 | Net investment income | ||||||||||||||||
Foreign currency swaps | (725 | ) | (15 | ) | (7 | ) | Net derivative gains (losses) | |||||||||||||
Foreign currency swaps | (2 | ) | (3 | ) | (5 | ) | Net investment income | |||||||||||||
Credit forwards | 1 | 1 | 1 | Net investment income | ||||||||||||||||
Gains (losses) on cash flow hedges, before income tax | (682 | ) | 14 | (2 | ) | |||||||||||||||
Income tax (expense) benefit | 239 | (5 | ) | 1 | ||||||||||||||||
Gains (losses) on cash flow hedges, net of income tax | $ | (443 | ) | $ | 9 | $ | (1 | ) | ||||||||||||
Defined benefit plans adjustment: (1) | ||||||||||||||||||||
Amortization of net actuarial gains (losses) | $ | (180 | ) | $ | 274 | $ | 246 | |||||||||||||
Amortization of prior service (costs) credit | — | (69 | ) | (98 | ) | |||||||||||||||
Amortization of defined benefit plan items, before income tax | (180 | ) | 205 | 148 | ||||||||||||||||
Income tax (expense) benefit | 64 | (71 | ) | (51 | ) | |||||||||||||||
Amortization of defined benefit plan items, net of income tax | $ | (116 | ) | $ | 134 | $ | 97 | |||||||||||||
Total reclassifications, net of income tax | $ | (605 | ) | $ | 153 | $ | 33 | |||||||||||||
__________________ | ||||||||||||||||||||
-1 | These AOCI components are included in the computation of net periodic benefit costs. See Note 15. |
Other_Expenses_Tables
Other Expenses (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||
Other Expenses | Information on other expenses was as follows: | |||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Compensation | $ | 2,257 | $ | 2,392 | $ | 2,426 | ||||||||||||||||||||||||||||||
Pension, postretirement and postemployment benefit costs | 322 | 364 | 285 | |||||||||||||||||||||||||||||||||
Commissions | 828 | 781 | 769 | |||||||||||||||||||||||||||||||||
Volume-related costs | 70 | 253 | 241 | |||||||||||||||||||||||||||||||||
Affiliated interest costs on ceded and assumed reinsurance | 1,009 | 1,033 | 1,209 | |||||||||||||||||||||||||||||||||
Capitalization of DAC | (424 | ) | (562 | ) | (632 | ) | ||||||||||||||||||||||||||||||
Amortization of DAC and VOBA | 695 | 261 | 991 | |||||||||||||||||||||||||||||||||
Interest expense on debt | 151 | 153 | 152 | |||||||||||||||||||||||||||||||||
Premium taxes, licenses and fees | 328 | 263 | 294 | |||||||||||||||||||||||||||||||||
Professional services | 1,013 | 989 | 946 | |||||||||||||||||||||||||||||||||
Rent and related expenses, net of sublease income | 128 | 143 | 123 | |||||||||||||||||||||||||||||||||
Other | (306 | ) | (82 | ) | (410 | ) | ||||||||||||||||||||||||||||||
Total other expenses | $ | 6,071 | $ | 5,988 | $ | 6,394 | ||||||||||||||||||||||||||||||
Restructuring Charges | Information regarding restructuring charges was as follows: | |||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Severance | Lease and | Total | Severance | Lease and | Total | Severance | Lease and | Total | ||||||||||||||||||||||||||||
Asset | Asset | Asset | ||||||||||||||||||||||||||||||||||
Impairment | Impairment | Impairment | ||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 39 | $ | 6 | $ | 45 | $ | 22 | $ | — | $ | 22 | $ | — | $ | — | $ | — | ||||||||||||||||||
Restructuring charges | 66 | 8 | 74 | 87 | 16 | 103 | 101 | 18 | 119 | |||||||||||||||||||||||||||
Cash payments | (74 | ) | (8 | ) | (82 | ) | (70 | ) | (10 | ) | (80 | ) | (79 | ) | (18 | ) | (97 | ) | ||||||||||||||||||
Balance at December 31, | $ | 31 | $ | 6 | $ | 37 | $ | 39 | $ | 6 | $ | 45 | $ | 22 | $ | — | $ | 22 | ||||||||||||||||||
Total restructuring charges incurred since inception of initiative | $ | 254 | $ | 42 | $ | 296 | $ | 188 | $ | 34 | $ | 222 | $ | 101 | $ | 18 | $ | 119 | ||||||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits (1) | Other Postretirement Benefits | Pension Benefits (1) | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||||||||||
Benefit obligations at January 1, | $ | 8,130 | $ | 1,861 | $ | 8,937 | $ | 2,402 | ||||||||||||||||||||||||||||||||
Service costs | 183 | 14 | 214 | 20 | ||||||||||||||||||||||||||||||||||||
Interest costs | 413 | 92 | 367 | 92 | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 1,461 | 264 | (967 | ) | (550 | ) | ||||||||||||||||||||||||||||||||||
Settlements and curtailments | (13 | ) | (6 | ) | — | — | ||||||||||||||||||||||||||||||||||
Change in benefits and other | 574 | (16 | ) | 26 | — | |||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Foreign exchange impact | — | (1 | ) | — | — | |||||||||||||||||||||||||||||||||||
Benefit obligations at December 31, | 10,262 | 2,129 | 8,130 | 1,861 | ||||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1, | 7,305 | 1,352 | 7,390 | 1,320 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 1,018 | 112 | (20 | ) | 57 | |||||||||||||||||||||||||||||||||||
Change in benefits and other | 523 | — | 28 | — | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Employer contributions | 390 | 41 | 354 | 78 | ||||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31, | 8,750 | 1,426 | 7,305 | 1,352 | ||||||||||||||||||||||||||||||||||||
Over (under) funded status at December 31, | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets | ||||||||||||||||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 213 | $ | — | ||||||||||||||||||||||||||||||||
Other liabilities | (1,512 | ) | (703 | ) | (1,038 | ) | (509 | ) | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
AOCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | $ | 3,034 | $ | 420 | $ | 2,207 | $ | 209 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (2 | ) | (10 | ) | 17 | 1 | ||||||||||||||||||||||||||||||||||
AOCI, before income tax | $ | 3,032 | $ | 410 | $ | 2,224 | $ | 210 | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 9,729 | N/A | $ | 7,689 | N/A | ||||||||||||||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Includes non-qualified unfunded plans, for which the aggregate PBO was $1.3 billion and $1.0 billion at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits (1) | Other Postretirement Benefits | Pension Benefits (1) | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||||||||||
Benefit obligations at January 1, | $ | 8,130 | $ | 1,861 | $ | 8,937 | $ | 2,402 | ||||||||||||||||||||||||||||||||
Service costs | 183 | 14 | 214 | 20 | ||||||||||||||||||||||||||||||||||||
Interest costs | 413 | 92 | 367 | 92 | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 1,461 | 264 | (967 | ) | (550 | ) | ||||||||||||||||||||||||||||||||||
Settlements and curtailments | (13 | ) | (6 | ) | — | — | ||||||||||||||||||||||||||||||||||
Change in benefits and other | 574 | (16 | ) | 26 | — | |||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Foreign exchange impact | — | (1 | ) | — | — | |||||||||||||||||||||||||||||||||||
Benefit obligations at December 31, | 10,262 | 2,129 | 8,130 | 1,861 | ||||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1, | 7,305 | 1,352 | 7,390 | 1,320 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 1,018 | 112 | (20 | ) | 57 | |||||||||||||||||||||||||||||||||||
Change in benefits and other | 523 | — | 28 | — | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Employer contributions | 390 | 41 | 354 | 78 | ||||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31, | 8,750 | 1,426 | 7,305 | 1,352 | ||||||||||||||||||||||||||||||||||||
Over (under) funded status at December 31, | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets | ||||||||||||||||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 213 | $ | — | ||||||||||||||||||||||||||||||||
Other liabilities | (1,512 | ) | (703 | ) | (1,038 | ) | (509 | ) | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
AOCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | $ | 3,034 | $ | 420 | $ | 2,207 | $ | 209 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (2 | ) | (10 | ) | 17 | 1 | ||||||||||||||||||||||||||||||||||
AOCI, before income tax | $ | 3,032 | $ | 410 | $ | 2,224 | $ | 210 | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 9,729 | N/A | $ | 7,689 | N/A | ||||||||||||||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Includes non-qualified unfunded plans, for which the aggregate PBO was $1.3 billion and $1.0 billion at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits (1) | Other Postretirement Benefits | Pension Benefits (1) | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||||||||||
Benefit obligations at January 1, | $ | 8,130 | $ | 1,861 | $ | 8,937 | $ | 2,402 | ||||||||||||||||||||||||||||||||
Service costs | 183 | 14 | 214 | 20 | ||||||||||||||||||||||||||||||||||||
Interest costs | 413 | 92 | 367 | 92 | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 1,461 | 264 | (967 | ) | (550 | ) | ||||||||||||||||||||||||||||||||||
Settlements and curtailments | (13 | ) | (6 | ) | — | — | ||||||||||||||||||||||||||||||||||
Change in benefits and other | 574 | (16 | ) | 26 | — | |||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Foreign exchange impact | — | (1 | ) | — | — | |||||||||||||||||||||||||||||||||||
Benefit obligations at December 31, | 10,262 | 2,129 | 8,130 | 1,861 | ||||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1, | 7,305 | 1,352 | 7,390 | 1,320 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 1,018 | 112 | (20 | ) | 57 | |||||||||||||||||||||||||||||||||||
Change in benefits and other | 523 | — | 28 | — | ||||||||||||||||||||||||||||||||||||
Plan participants’ contributions | — | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Employer contributions | 390 | 41 | 354 | 78 | ||||||||||||||||||||||||||||||||||||
Benefits paid | (486 | ) | (109 | ) | (447 | ) | (133 | ) | ||||||||||||||||||||||||||||||||
Fair value of plan assets at December 31, | 8,750 | 1,426 | 7,305 | 1,352 | ||||||||||||||||||||||||||||||||||||
Over (under) funded status at December 31, | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets | ||||||||||||||||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 213 | $ | — | ||||||||||||||||||||||||||||||||
Other liabilities | (1,512 | ) | (703 | ) | (1,038 | ) | (509 | ) | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | (1,512 | ) | $ | (703 | ) | $ | (825 | ) | $ | (509 | ) | ||||||||||||||||||||||||||||
AOCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | $ | 3,034 | $ | 420 | $ | 2,207 | $ | 209 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (2 | ) | (10 | ) | 17 | 1 | ||||||||||||||||||||||||||||||||||
AOCI, before income tax | $ | 3,032 | $ | 410 | $ | 2,224 | $ | 210 | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 9,729 | N/A | $ | 7,689 | N/A | ||||||||||||||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Includes non-qualified unfunded plans, for which the aggregate PBO was $1.3 billion and $1.0 billion at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligations in excess of fair value of plan assets | The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension benefit plans with accumulated benefit obligations in excess of plan assets was as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Projected benefit obligations | $ | 1,981 | $ | 1,037 | ||||||||||||||||||||||||||||||||||||
Accumulated benefit obligations | $ | 1,789 | $ | 927 | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 676 | $ | — | ||||||||||||||||||||||||||||||||||||
Defined benefit plan pension plans with projected benefit obligations in excess of plan assets | Information for pension and other postretirement benefit plans with a PBO in excess of plan assets were as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement | Pension Benefits | Other Postretirement | |||||||||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Projected benefit obligations | $ | 10,241 | $ | 2,129 | $ | 1,170 | $ | 1,863 | ||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 8,719 | $ | 1,426 | $ | 133 | $ | 1,353 | ||||||||||||||||||||||||||||||||
Net periodic benefit costs and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | The Company’s proportionate share of components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs | ||||||||||||||||||||||||||||||||||||||||
Service costs | $ | 200 | $ | 14 | $ | 214 | $ | 17 | $ | 195 | $ | 31 | ||||||||||||||||||||||||||||
Interest costs | 437 | 92 | 366 | 85 | 383 | 97 | ||||||||||||||||||||||||||||||||||
Settlement and curtailment costs | 14 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (475 | ) | (75 | ) | (453 | ) | (74 | ) | (456 | ) | (76 | ) | ||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses | 169 | 11 | 219 | 51 | 188 | 53 | ||||||||||||||||||||||||||||||||||
Amortization of prior service costs (credit) | 1 | (1 | ) | 6 | (69 | ) | 6 | (97 | ) | |||||||||||||||||||||||||||||||
Allocated to affiliates | (54 | ) | (11 | ) | (12 | ) | — | (12 | ) | (1 | ) | |||||||||||||||||||||||||||||
Total net periodic benefit costs (credit) | 292 | 32 | 340 | 10 | 304 | 7 | ||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in OCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 996 | 222 | (492 | ) | (532 | ) | 705 | 232 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (18 | ) | (12 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses | (169 | ) | (11 | ) | (219 | ) | (55 | ) | (189 | ) | (57 | ) | ||||||||||||||||||||||||||||
Amortization of prior service (costs) credit | (1 | ) | 1 | (6 | ) | 75 | (6 | ) | 104 | |||||||||||||||||||||||||||||||
Total recognized in OCI | 808 | 200 | (717 | ) | (512 | ) | 510 | 279 | ||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit costs and OCI | $ | 1,100 | $ | 232 | $ | (377 | ) | $ | (502 | ) | $ | 814 | $ | 286 | ||||||||||||||||||||||||||
Net periodic benefit costs and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | The Company’s proportionate share of components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: | |||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs | ||||||||||||||||||||||||||||||||||||||||
Service costs | $ | 200 | $ | 14 | $ | 214 | $ | 17 | $ | 195 | $ | 31 | ||||||||||||||||||||||||||||
Interest costs | 437 | 92 | 366 | 85 | 383 | 97 | ||||||||||||||||||||||||||||||||||
Settlement and curtailment costs | 14 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | (475 | ) | (75 | ) | (453 | ) | (74 | ) | (456 | ) | (76 | ) | ||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses | 169 | 11 | 219 | 51 | 188 | 53 | ||||||||||||||||||||||||||||||||||
Amortization of prior service costs (credit) | 1 | (1 | ) | 6 | (69 | ) | 6 | (97 | ) | |||||||||||||||||||||||||||||||
Allocated to affiliates | (54 | ) | (11 | ) | (12 | ) | — | (12 | ) | (1 | ) | |||||||||||||||||||||||||||||
Total net periodic benefit costs (credit) | 292 | 32 | 340 | 10 | 304 | 7 | ||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in OCI | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (gains) losses | 996 | 222 | (492 | ) | (532 | ) | 705 | 232 | ||||||||||||||||||||||||||||||||
Prior service costs (credit) | (18 | ) | (12 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses | (169 | ) | (11 | ) | (219 | ) | (55 | ) | (189 | ) | (57 | ) | ||||||||||||||||||||||||||||
Amortization of prior service (costs) credit | (1 | ) | 1 | (6 | ) | 75 | (6 | ) | 104 | |||||||||||||||||||||||||||||||
Total recognized in OCI | 808 | 200 | (717 | ) | (512 | ) | 510 | 279 | ||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit costs and OCI | $ | 1,100 | $ | 232 | $ | (377 | ) | $ | (502 | ) | $ | 814 | $ | 286 | ||||||||||||||||||||||||||
Assumptions used in determining benefit obligations and net periodic benefit costs | Assumptions used in determining benefit obligations were as follows at: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Weighted average discount rate | 4.10% | 4.10% | 5.15% | 5.15% | ||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 2.25 | % | - | 8.50% | N/A | 3.5 | % | - | 7.50% | N/A | ||||||||||||||||||||||||||||||
Assumptions used in determining net periodic benefit costs were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
Weighted average discount rate | 5.15% | 5.15% | 4.20% | 4.20% | 4.95% | 4.95% | ||||||||||||||||||||||||||||||||||
Weighted average expected rate of return on plan assets | 6.25% | 5.70% | 6.24% | 5.76% | 7.00% | 6.26% | ||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.5 | % | - | 7.50% | N/A | 3.5 | % | - | 7.50% | N/A | 3.5 | % | - | 7.50% | N/A | |||||||||||||||||||||||||
Assumed healthcare costs trend rates | The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows: | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pre-and Post-Medicare eligible claims | 6.4% for 2015, gradually decreasing each year for Pre-Medicare until 2094 reaching the ultimate rate of 4.4% and for Post-Medicare until 2089 reaching the ultimate rate of 4.7% | 6.4% in 2014, gradually decreasing each year until 2094 reaching the ultimate rate of 4.4% for Pre-Medicare and 4.6% for Post-Medicare. | ||||||||||||||||||||||||||||||||||||||
One-percentage point change in assumed healthcare cost trend rates | Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare costs trend rates would have the following effects as of December 31, 2014: | |||||||||||||||||||||||||||||||||||||||
One Percent | One Percent | |||||||||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Effect on total of service and interest costs components | $ | 14 | $ | (11 | ) | |||||||||||||||||||||||||||||||||||
Effect of accumulated postretirement benefit obligations | $ | 302 | $ | (245 | ) | |||||||||||||||||||||||||||||||||||
Plan Assets | These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows: | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
Fair | Fair | |||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate | $ | — | $ | 2,638 | $ | 80 | $ | 2,718 | $ | 42 | $ | 244 | $ | 3 | $ | 289 | ||||||||||||||||||||||||
U.S. government bonds | 1,605 | 223 | — | 1,828 | 169 | 12 | — | 181 | ||||||||||||||||||||||||||||||||
Foreign bonds | — | 718 | 17 | 735 | — | 68 | — | 68 | ||||||||||||||||||||||||||||||||
Federal agencies | — | 254 | — | 254 | — | 35 | — | 35 | ||||||||||||||||||||||||||||||||
Municipals | — | 270 | — | 270 | — | 74 | — | 74 | ||||||||||||||||||||||||||||||||
Other (1) | — | 188 | 8 | 196 | — | 63 | — | 63 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 1,605 | 4,291 | 105 | 6,001 | 211 | 496 | 3 | 710 | ||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||
Common stock - domestic | 951 | — | — | 951 | 188 | — | — | 188 | ||||||||||||||||||||||||||||||||
Common stock - foreign | 394 | — | — | 394 | 80 | — | — | 80 | ||||||||||||||||||||||||||||||||
Total equity securities | 1,345 | — | — | 1,345 | 268 | — | — | 268 | ||||||||||||||||||||||||||||||||
Other investments | — | 24 | 743 | 767 | — | — | — | — | ||||||||||||||||||||||||||||||||
Short-term investments | 189 | 273 | — | 462 | 14 | 433 | — | 447 | ||||||||||||||||||||||||||||||||
Money market securities | 29 | 56 | — | 85 | — | — | — | — | ||||||||||||||||||||||||||||||||
Derivative assets | 11 | 7 | 72 | 90 | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||
Total assets | $ | 3,179 | $ | 4,651 | $ | 920 | $ | 8,750 | $ | 493 | $ | 930 | $ | 3 | $ | 1,426 | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
Fair | Fair | |||||||||||||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate | $ | — | $ | 1,948 | $ | 55 | $ | 2,003 | $ | 77 | $ | 170 | $ | 1 | $ | 248 | ||||||||||||||||||||||||
U.S. government bonds | 868 | 156 | — | 1,024 | 135 | 5 | — | 140 | ||||||||||||||||||||||||||||||||
Foreign bonds | — | 675 | 10 | 685 | — | 63 | — | 63 | ||||||||||||||||||||||||||||||||
Federal agencies | — | 274 | — | 274 | — | 33 | — | 33 | ||||||||||||||||||||||||||||||||
Municipals | — | 206 | — | 206 | 55 | 15 | — | 70 | ||||||||||||||||||||||||||||||||
Other (1) | — | 460 | 19 | 479 | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 868 | 3,719 | 84 | 4,671 | 267 | 340 | 1 | 608 | ||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||
Common stock - domestic | 1,064 | 21 | 139 | 1,224 | 196 | — | — | 196 | ||||||||||||||||||||||||||||||||
Common stock - foreign | 432 | — | — | 432 | 102 | — | — | 102 | ||||||||||||||||||||||||||||||||
Total equity securities | 1,496 | 21 | 139 | 1,656 | 298 | — | — | 298 | ||||||||||||||||||||||||||||||||
Other investments | — | — | 563 | 563 | — | — | — | — | ||||||||||||||||||||||||||||||||
Short-term investments | 49 | 290 | — | 339 | — | 439 | — | 439 | ||||||||||||||||||||||||||||||||
Money market securities | 1 | 12 | — | 13 | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||
Derivative assets | 16 | 14 | 33 | 63 | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||
Total assets | $ | 2,430 | $ | 4,056 | $ | 819 | $ | 7,305 | $ | 569 | $ | 782 | $ | 1 | $ | 1,352 | ||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Other primarily includes mortgage-backed securities, collateralized mortgage obligations and ABS. | |||||||||||||||||||||||||||||||||||||||
The table below summarizes the actual weighted average allocation of the fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2014 for the Invested Plans: | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Pension | Postretirement Medical | Postretirement Life | Pension | Postretirement Medical | Postretirement Life | |||||||||||||||||||||||||||||||||||
Target | Actual | Target | Actual | Target | Actual | Actual | Actual | Actual | ||||||||||||||||||||||||||||||||
Allocation | Allocation | Allocation | Allocation | Allocation | Allocation | |||||||||||||||||||||||||||||||||||
Asset Class | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities (1) | 75 | % | 69 | % | 70 | % | 71 | % | — | % | — | % | 64 | % | 66 | % | — | % | ||||||||||||||||||||||
Equity securities (2) | 12 | % | 15 | % | 30 | % | 27 | % | — | % | — | % | 23 | % | 33 | % | — | % | ||||||||||||||||||||||
Alternative securities (3) | 13 | % | 16 | % | — | % | 2 | % | 100 | % | 100 | % | 13 | % | 1 | % | 100 | % | ||||||||||||||||||||||
Total assets | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Fixed maturity securities include ABS, collateralized mortgage obligations, corporate, federal agency, foreign bonds, mortgage-backed securities, municipals, preferred stocks, U.S. government bonds and exchange traded funds. Certain prior year amounts have been reclassified from equity securities into fixed maturity securities to conform to the current year presentation. | |||||||||||||||||||||||||||||||||||||||
-2 | Equity securities primarily include common stock of U.S. companies. | |||||||||||||||||||||||||||||||||||||||
-3 | Alternative securities primarily include derivative assets, money market securities, short-term investments and other investments. Postretirement life’s target and actual allocation of plan assets are all in short-term investments. | |||||||||||||||||||||||||||||||||||||||
Rollforward fair value measurement using significant unobservable outputs (level 3) | A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows: | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity | Equity | Fixed Maturity | ||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||||||||||||||||||||||
Corporate | Foreign | Other (1) | Common | Other | Derivative | Corporate | Municipals | Other (1) | Derivative | |||||||||||||||||||||||||||||||
Bonds | Stock - | Investments | Assets | Assets | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 55 | $ | 10 | $ | 19 | $ | 139 | $ | 563 | $ | 33 | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Realized gains (losses) | 3 | — | — | — | (13 | ) | (16 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Unrealized gains (losses) | — | — | — | — | 114 | 19 | 1 | — | — | — | ||||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | 11 | 5 | (2 | ) | — | (104 | ) | 34 | 1 | — | — | — | ||||||||||||||||||||||||||||
Transfers into and/or out of Level 3 | 11 | 2 | (9 | ) | (139 | ) | 183 | 2 | — | — | — | — | ||||||||||||||||||||||||||||
Balance at December 31, | $ | 80 | $ | 17 | $ | 8 | $ | — | $ | 743 | $ | 72 | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity | Equity | Fixed Maturity | ||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||||||||||||||||||||||
Corporate | Foreign | Other (1) | Common | Other | Derivative | Corporate | Municipals | Other (1) | Derivative | |||||||||||||||||||||||||||||||
Bonds | Stock - | Investments | Assets | Assets | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 18 | $ | 7 | $ | 7 | $ | 129 | $ | 419 | $ | 1 | $ | 4 | $ | 1 | $ | 3 | $ | — | ||||||||||||||||||||
Realized gains (losses) | — | — | — | (1 | ) | — | (2 | ) | — | — | (3 | ) | — | |||||||||||||||||||||||||||
Unrealized gains (losses) | (2 | ) | 1 | — | 9 | 56 | (17 | ) | — | — | 4 | — | ||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | 17 | (3 | ) | 11 | 2 | (58 | ) | 51 | (3 | ) | (1 | ) | (4 | ) | — | |||||||||||||||||||||||||
Transfers into and/or out of Level 3 | 22 | 5 | 1 | — | 146 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at December 31, | $ | 55 | $ | 10 | $ | 19 | $ | 139 | $ | 563 | $ | 33 | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity | Equity | Fixed Maturity | ||||||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | ||||||||||||||||||||||||||||||||||||||
Corporate | Foreign | Other (1) | Common | Other | Derivative | Corporate | Municipals | Other (1) | Derivative | |||||||||||||||||||||||||||||||
Bonds | Stock - | Investments | Assets | Assets | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 30 | $ | 5 | $ | 2 | $ | 194 | $ | 501 | $ | 4 | $ | 4 | $ | 1 | $ | 5 | $ | 1 | ||||||||||||||||||||
Realized gains (losses) | — | — | — | (25 | ) | 52 | 4 | — | — | (2 | ) | 2 | ||||||||||||||||||||||||||||
Unrealized gains (losses) | (1 | ) | 8 | 1 | 9 | (38 | ) | (6 | ) | — | — | 2 | (2 | ) | ||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | (11 | ) | (6 | ) | 4 | (49 | ) | (96 | ) | (1 | ) | — | — | (2 | ) | (1 | ) | |||||||||||||||||||||||
Transfers into and/or out of Level 3 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance at December 31, | $ | 18 | $ | 7 | $ | 7 | $ | 129 | $ | 419 | $ | 1 | $ | 4 | $ | 1 | $ | 3 | $ | — | ||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Other includes ABS and collateralized mortgage obligations. | |||||||||||||||||||||||||||||||||||||||
Defined benefit plan estimated future benefit payments | Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows: | |||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
2015 | $ | 490 | $ | 81 | ||||||||||||||||||||||||||||||||||||
2016 | $ | 507 | $ | 82 | ||||||||||||||||||||||||||||||||||||
2017 | $ | 531 | $ | 85 | ||||||||||||||||||||||||||||||||||||
2018 | $ | 544 | $ | 88 | ||||||||||||||||||||||||||||||||||||
2019 | $ | 565 | $ | 92 | ||||||||||||||||||||||||||||||||||||
2020-2024 | $ | 3,134 | $ | 522 | ||||||||||||||||||||||||||||||||||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Provision for income tax from continuing operations | The provision for income tax from continuing operations was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 901 | $ | 789 | $ | 675 | ||||||
State and local | 3 | 2 | 2 | |||||||||
Foreign | 74 | 176 | 176 | |||||||||
Subtotal | 978 | 967 | 853 | |||||||||
Deferred: | ||||||||||||
Federal | 538 | (411 | ) | 346 | ||||||||
Foreign | 16 | 125 | (144 | ) | ||||||||
Subtotal | 554 | (286 | ) | 202 | ||||||||
Provision for income tax expense (benefit) | $ | 1,532 | $ | 681 | $ | 1,055 | ||||||
Income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations | The Company’s income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations were as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Income (loss) from continuing operations: | ||||||||||||
Domestic | $ | 5,335 | $ | 2,540 | $ | 3,153 | ||||||
Foreign | 56 | 282 | 545 | |||||||||
Total | $ | 5,391 | $ | 2,822 | $ | 3,698 | ||||||
Income tax for continuing operations effective rate reconciliation | The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for continuing operations was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Tax provision at U.S. statutory rate | $ | 1,887 | $ | 988 | $ | 1,294 | ||||||
Tax effect of: | ||||||||||||
Dividend received deduction | (82 | ) | (66 | ) | (75 | ) | ||||||
Tax-exempt income | (40 | ) | (42 | ) | (43 | ) | ||||||
Prior year tax | 11 | 29 | 10 | |||||||||
Low income housing tax credits | (205 | ) | (190 | ) | (142 | ) | ||||||
Other tax credits | (66 | ) | (44 | ) | (18 | ) | ||||||
Foreign tax rate differential | — | 2 | 3 | |||||||||
Change in valuation allowance | — | (4 | ) | 13 | ||||||||
Other, net | 27 | 8 | 13 | |||||||||
Provision for income tax expense (benefit) | $ | 1,532 | $ | 681 | $ | 1,055 | ||||||
Components of deferred tax assets and liabilities | Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Deferred income tax assets: | ||||||||||||
Policyholder liabilities and receivables | $ | 1,577 | $ | 1,823 | ||||||||
Net operating loss carryforwards | 29 | 64 | ||||||||||
Employee benefits | 1,015 | 649 | ||||||||||
Capital loss carryforwards | — | 14 | ||||||||||
Tax credit carryforwards | 979 | 909 | ||||||||||
Litigation-related and government mandated | 259 | 223 | ||||||||||
Other | 309 | 349 | ||||||||||
Total gross deferred income tax assets | 4,168 | 4,031 | ||||||||||
Less: Valuation allowance | 22 | 72 | ||||||||||
Total net deferred income tax assets | 4,146 | 3,959 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Investments, including derivatives | 2,402 | 2,021 | ||||||||||
Intangibles | 72 | 77 | ||||||||||
DAC | 1,568 | 1,600 | ||||||||||
Net unrealized investment gains | 3,903 | 2,019 | ||||||||||
Other | 36 | 27 | ||||||||||
Total deferred income tax liabilities | 7,981 | 5,744 | ||||||||||
Net deferred income tax asset (liability) | $ | (3,835 | ) | $ | (1,785 | ) | ||||||
Summary of net operating loss carryforwards for tax purposes | The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2014. | |||||||||||
Net Operating Loss Carryforwards | ||||||||||||
Domestic | State | |||||||||||
(In millions) | ||||||||||||
Expiration | ||||||||||||
2015-2019 | $ | — | $ | 32 | ||||||||
2020-2024 | — | 44 | ||||||||||
2025-2029 | — | 53 | ||||||||||
2030-2034 | 21 | 8 | ||||||||||
Indefinite | — | — | ||||||||||
$ | 21 | $ | 137 | |||||||||
Summary of Tax Credit Carryforwards | The following table sets forth the general business credits, foreign tax credits, and other tax credit carryforwards for tax purposes at December 31, 2014. | |||||||||||
Tax Credit Carryforwards | ||||||||||||
General Business Credits | Foreign Tax Credits | Other | ||||||||||
(In millions) | ||||||||||||
Expiration | ||||||||||||
2015-2019 | $ | — | $ | — | $ | — | ||||||
2020-2024 | — | 301 | — | |||||||||
2025-2029 | 4 | — | — | |||||||||
2030-2034 | 832 | — | — | |||||||||
Indefinite | — | — | 32 | |||||||||
$ | 836 | $ | 301 | $ | 32 | |||||||
Reconciliation of unrecognized tax benefits | Interest was as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Interest recognized in the consolidated statements of operations | $ | 37 | $ | 17 | $ | 8 | ||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Interest included in other liabilities in the consolidated balance sheets | $ | 265 | $ | 228 | ||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | 532 | $ | 532 | $ | 525 | ||||||
Additions for tax positions of prior years | 27 | 50 | 27 | |||||||||
Reductions for tax positions of prior years | (13 | ) | (4 | ) | (5 | ) | ||||||
Additions for tax positions of current year | 3 | 3 | — | |||||||||
Settlements with tax authorities | (3 | ) | (49 | ) | (15 | ) | ||||||
Balance at December 31, | $ | 546 | $ | 532 | $ | 532 | ||||||
Unrecognized tax benefits that, if recognized would impact the effective rate | $ | 497 | $ | 491 | $ | 466 | ||||||
Contingencies_Commitments_and_1
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments - Leases | The Company, as lessee, has entered into various lease and sublease agreements for office space, information technology, aircrafts and other equipment. Future minimum gross rental payments relating to these lease arrangements are as follows: | |||||||||||
Amount | ||||||||||||
(In millions) | ||||||||||||
2015 | $ | 223 | ||||||||||
2016 | 190 | |||||||||||
2017 | 147 | |||||||||||
2018 | 133 | |||||||||||
2019 | 110 | |||||||||||
Thereafter | 701 | |||||||||||
Total | $ | 1,504 | ||||||||||
Asbestos Related Claims [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Schedule of Loss Contingencies by Contingency | The approximate total number of asbestos personal injury claims pending against Metropolitan Life Insurance Company as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions, except number of claims) | ||||||||||||
Asbestos personal injury claims at year end | 68,460 | 67,983 | 65,812 | |||||||||
Number of new claims during the year | 4,636 | 5,898 | 5,303 | |||||||||
Settlement payments during the year (1) | $ | 46 | $ | 37 | $ | 36.4 | ||||||
______________ | ||||||||||||
-1 | Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC’s attorneys’ fees and expenses and do not reflect amounts received from insurance carriers. | |||||||||||
Insurance-related Assessments [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Schedule of Loss Contingencies by Contingency | Assets and liabilities held for insolvency assessments were as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Other Assets: | ||||||||||||
Premium tax offset for future undiscounted assessments | $ | 34 | $ | 46 | ||||||||
Premium tax offsets currently available for paid assessments | 65 | 54 | ||||||||||
$ | 99 | $ | 100 | |||||||||
Other Liabilities: | ||||||||||||
Insolvency assessments | $ | 50 | $ | 67 | ||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Results of Operations (Unaudited) | The unaudited quarterly results of operations for 2014 and 2013 are summarized in the table below: | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
(In millions) | ||||||||||||||||
2014 | ||||||||||||||||
Total revenues | $ | 9,037 | $ | 9,252 | $ | 9,857 | $ | 10,585 | ||||||||
Total expenses | $ | 7,889 | $ | 8,210 | $ | 8,017 | $ | 9,224 | ||||||||
Income (loss) from continuing operations, net of income tax | $ | 828 | $ | 749 | $ | 1,303 | $ | 979 | ||||||||
Income (loss) from discontinued operations, net of income tax | $ | (3 | ) | $ | — | $ | — | $ | — | |||||||
Net income (loss) | $ | 825 | $ | 749 | $ | 1,303 | $ | 979 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | $ | 1 | $ | — | $ | (7 | ) | $ | 1 | |||||||
Net income (loss) attributable to Metropolitan Life Insurance Company | $ | 824 | $ | 749 | $ | 1,310 | $ | 978 | ||||||||
2013 | ||||||||||||||||
Total revenues | $ | 8,766 | $ | 8,632 | $ | 8,018 | $ | 9,884 | ||||||||
Total expenses | $ | 7,843 | $ | 7,771 | $ | 7,758 | $ | 9,106 | ||||||||
Income (loss) from continuing operations, net of income tax | $ | 673 | $ | 646 | $ | 242 | $ | 580 | ||||||||
Income (loss) from discontinued operations, net of income tax | $ | — | $ | — | $ | — | $ | 1 | ||||||||
Net income (loss) | $ | 673 | $ | 646 | $ | 242 | $ | 581 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | $ | (1 | ) | $ | 3 | $ | (5 | ) | $ | (4 | ) | |||||
Net income (loss) attributable to Metropolitan Life Insurance Company | $ | 674 | $ | 643 | $ | 247 | $ | 585 | ||||||||
Business_Basis_of_Presentation3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Reclassification) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Gains (Losses) On Investments And Sales Of Businesses, Net [Member] | ||
Prior Period Reclassification Adjustment | ($1,161) | $460 |
Other, Net [Member] | ||
Prior Period Reclassification Adjustment | 102 | 101 |
Gains (Losses) On Derivatives, Net [Member] | ||
Prior Period Reclassification Adjustment | $1,059 | ($561) |
Business_Basis_of_Presentation4
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of segments | 3 | ||
Property, Equipment, Leasehold Improvements and Computer Software [Abstract] | |||
Cost basis of property, equipment and leasehold improvements | $1,300,000,000 | $1,200,000,000 | |
Accumulated depreciation and amortization of property, equipment and leasehold improvements | 721,000,000 | 667,000,000 | |
Depreciation and amortization expense | 123,000,000 | 115,000,000 | 121,000,000 |
Cost basis of computer software | 1,200,000,000 | 1,000,000,000 | |
Accumulated amortization of computer software | 882,000,000 | 739,000,000 | |
Amortization expense related to computer software | 145,000,000 | 144,000,000 | 143,000,000 |
Accounting Standards Update 2011-06 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of the new accounting pronouncement | 55,000,000 | ||
Accounting Standards Update 2013-11 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of the new accounting pronouncement | $190,000,000 | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 4 years | ||
Minimum | |||
Real Estate Held-for-investment And Accumulated Depreciation [Line Items] | |||
Real Estate Held-for-investment And Accumulated Depreciation Life Used For Depreciation | 20 years | ||
Minimum | Other Capitalized Property Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Minimum | VODA and VOCRA [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Maximum | |||
Real Estate Held-for-investment And Accumulated Depreciation [Line Items] | |||
Real Estate Held-for-investment And Accumulated Depreciation Life Used For Depreciation | 55 years | ||
Maximum | Other Capitalized Property Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Maximum | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years | ||
Maximum | VODA and VOCRA [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 30 years |
Segment_Information_Earnings_D
Segment Information (Earnings) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||||||||||
Premiums | $21,384 | $20,475 | $19,880 | ||||||||
Universal life and investment-type product policy fees | 2,466 | 2,363 | 2,239 | ||||||||
Net investment income | 11,893 | 11,785 | 11,852 | ||||||||
Other revenues | 1,808 | 1,699 | 1,730 | ||||||||
Net investment gains (losses) | 143 | 48 | -330 | ||||||||
Net derivative gains (losses) | 1,037 | -1,070 | 675 | ||||||||
Total revenues | 10,585 | 9,857 | 9,252 | 9,037 | 9,884 | 8,018 | 8,632 | 8,766 | 38,731 | 35,300 | 36,046 |
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 25,095 | 24,237 | 23,564 | ||||||||
Interest credited to policyholder account balances | 2,174 | 2,253 | 2,390 | ||||||||
Capitalization of DAC | -424 | -562 | -632 | ||||||||
Amortization of DAC and VOBA | 695 | 261 | 991 | ||||||||
Interest expense on debt | 151 | 153 | 152 | ||||||||
Other expenses | 5,649 | 6,136 | 5,883 | ||||||||
Total expenses | 9,224 | 8,017 | 8,210 | 7,889 | 9,106 | 7,758 | 7,771 | 7,843 | 33,340 | 32,478 | 32,348 |
Provision for income tax expense (benefit) | 1,532 | 681 | 1,055 | ||||||||
Income (loss) from continuing operations, net of income tax | 979 | 1,303 | 749 | 828 | 580 | 242 | 646 | 673 | 3,859 | 2,141 | 2,643 |
Retail | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 652 | 217 | 948 | ||||||||
Group, Voluntary & Worksite Benefits | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 26 | 25 | 29 | ||||||||
Corporate Benefit Funding | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 17 | 19 | 12 | ||||||||
Corporate & Other | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 0 | 0 | 2 | ||||||||
Operating Segments [Member] | |||||||||||
Revenues | |||||||||||
Premiums | 21,384 | 20,475 | 19,880 | ||||||||
Universal life and investment-type product policy fees | 2,412 | 2,296 | 2,189 | ||||||||
Net investment income | 12,365 | 12,217 | 12,137 | ||||||||
Other revenues | 1,808 | 1,699 | 1,730 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 37,969 | 36,687 | 35,936 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 25,050 | 24,227 | 23,425 | ||||||||
Interest credited to policyholder account balances | 2,163 | 2,236 | 2,361 | ||||||||
Capitalization of DAC | -424 | -562 | -632 | ||||||||
Amortization of DAC and VOBA | 579 | 491 | 699 | ||||||||
Interest expense on debt | 150 | 150 | 148 | ||||||||
Other expenses | 5,655 | 6,105 | 5,876 | ||||||||
Total expenses | 33,173 | 32,647 | 31,877 | ||||||||
Provision for income tax expense (benefit) | 1,322 | 1,116 | 1,171 | ||||||||
Operating earnings | 3,474 | 2,924 | 2,888 | ||||||||
Operating Segments [Member] | Retail | |||||||||||
Revenues | |||||||||||
Premiums | 4,081 | 3,992 | 3,997 | ||||||||
Universal life and investment-type product policy fees | 1,505 | 1,397 | 1,332 | ||||||||
Net investment income | 5,402 | 5,385 | 5,384 | ||||||||
Other revenues | 430 | 328 | 265 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 11,418 | 11,102 | 10,978 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 6,379 | 6,246 | 6,294 | ||||||||
Interest credited to policyholder account balances | 988 | 988 | 1,002 | ||||||||
Capitalization of DAC | -376 | -517 | -584 | ||||||||
Amortization of DAC and VOBA | 536 | 447 | 656 | ||||||||
Interest expense on debt | 6 | 5 | 5 | ||||||||
Other expenses | 1,797 | 2,280 | 2,341 | ||||||||
Total expenses | 9,330 | 9,449 | 9,714 | ||||||||
Provision for income tax expense (benefit) | 733 | 579 | 442 | ||||||||
Operating earnings | 1,355 | 1,074 | 822 | ||||||||
Operating Segments [Member] | Group, Voluntary & Worksite Benefits | |||||||||||
Revenues | |||||||||||
Premiums | 14,381 | 13,732 | 13,274 | ||||||||
Universal life and investment-type product policy fees | 716 | 688 | 663 | ||||||||
Net investment income | 1,783 | 1,790 | 1,680 | ||||||||
Other revenues | 415 | 404 | 398 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 17,295 | 16,614 | 16,015 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 13,823 | 13,191 | 12,580 | ||||||||
Interest credited to policyholder account balances | 155 | 156 | 167 | ||||||||
Capitalization of DAC | -17 | -20 | -24 | ||||||||
Amortization of DAC and VOBA | 26 | 25 | 29 | ||||||||
Interest expense on debt | 2 | 1 | 1 | ||||||||
Other expenses | 2,135 | 1,988 | 1,901 | ||||||||
Total expenses | 16,124 | 15,341 | 14,654 | ||||||||
Provision for income tax expense (benefit) | 430 | 446 | 477 | ||||||||
Operating earnings | 741 | 827 | 884 | ||||||||
Operating Segments [Member] | Corporate Benefit Funding | |||||||||||
Revenues | |||||||||||
Premiums | 2,794 | 2,675 | 2,608 | ||||||||
Universal life and investment-type product policy fees | 191 | 211 | 194 | ||||||||
Net investment income | 4,892 | 4,611 | 4,519 | ||||||||
Other revenues | 287 | 273 | 252 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 8,164 | 7,770 | 7,573 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 4,771 | 4,723 | 4,552 | ||||||||
Interest credited to policyholder account balances | 1,020 | 1,092 | 1,192 | ||||||||
Capitalization of DAC | -30 | -25 | -24 | ||||||||
Amortization of DAC and VOBA | 17 | 19 | 12 | ||||||||
Interest expense on debt | 10 | 10 | 9 | ||||||||
Other expenses | 492 | 489 | 438 | ||||||||
Total expenses | 6,280 | 6,308 | 6,179 | ||||||||
Provision for income tax expense (benefit) | 659 | 512 | 488 | ||||||||
Operating earnings | 1,225 | 950 | 906 | ||||||||
Operating Segments [Member] | Corporate & Other | |||||||||||
Revenues | |||||||||||
Premiums | 128 | 76 | 1 | ||||||||
Universal life and investment-type product policy fees | 0 | 0 | 0 | ||||||||
Net investment income | 288 | 431 | 554 | ||||||||
Other revenues | 676 | 694 | 815 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 1,092 | 1,201 | 1,370 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 77 | 67 | -1 | ||||||||
Interest credited to policyholder account balances | 0 | 0 | 0 | ||||||||
Capitalization of DAC | -1 | 0 | 0 | ||||||||
Amortization of DAC and VOBA | 0 | 0 | 2 | ||||||||
Interest expense on debt | 132 | 134 | 133 | ||||||||
Other expenses | 1,231 | 1,348 | 1,196 | ||||||||
Total expenses | 1,439 | 1,549 | 1,330 | ||||||||
Provision for income tax expense (benefit) | -500 | -421 | -236 | ||||||||
Operating earnings | 153 | 73 | 276 | ||||||||
Significant Reconciling Items [Member] | |||||||||||
Revenues | |||||||||||
Premiums | 0 | 0 | 0 | ||||||||
Universal life and investment-type product policy fees | 54 | 67 | 50 | ||||||||
Net investment income | -472 | -432 | -285 | ||||||||
Other revenues | 0 | 0 | 0 | ||||||||
Net investment gains (losses) | 143 | 48 | -330 | ||||||||
Net derivative gains (losses) | 1,037 | -1,070 | 675 | ||||||||
Total revenues | 762 | -1,387 | 110 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 45 | 10 | 139 | ||||||||
Interest credited to policyholder account balances | 11 | 17 | 29 | ||||||||
Capitalization of DAC | 0 | 0 | 0 | ||||||||
Amortization of DAC and VOBA | 116 | -230 | 292 | ||||||||
Interest expense on debt | 1 | 3 | 4 | ||||||||
Other expenses | -6 | 31 | 7 | ||||||||
Total expenses | 167 | -169 | 471 | ||||||||
Provision for income tax expense (benefit) | $210 | ($435) | ($116) |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Total assets | $458,218 | $432,783 |
Separate account assets | 139,335 | 134,796 |
Separate account liabilities | 139,335 | 134,796 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 180,572 | 174,853 |
Separate account assets | 59,710 | 59,217 |
Separate account liabilities | 59,710 | 59,217 |
Group, Voluntary & Worksite Benefits | ||
Segment Reporting Information [Line Items] | ||
Total assets | 43,161 | 41,059 |
Separate account assets | 669 | 644 |
Separate account liabilities | 669 | 644 |
Corporate Benefit Funding | ||
Segment Reporting Information [Line Items] | ||
Total assets | 205,088 | 188,960 |
Separate account assets | 78,956 | 74,935 |
Separate account liabilities | 78,956 | 74,935 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 29,397 | 27,911 |
Separate account assets | 0 | 0 |
Separate account liabilities | $0 | $0 |
Segment_Information_Premiums_U
Segment Information (Premiums, Universal Life and Investment-Type Policy Fees and Other Revenues by Major Product Groups) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $25,658 | $24,537 | $23,849 |
Life insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 13,865 | 13,482 | 13,424 |
Accident and health insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 7,247 | 6,873 | 6,458 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 4,352 | 4,007 | 3,800 |
Non-insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $194 | $175 | $167 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Number of segments | 3 | ||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total revenues | $10,585 | $9,857 | $9,252 | $9,037 | $9,884 | $8,018 | $8,632 | $8,766 | $38,731 | $35,300 | $36,046 |
Concentration Risk, Percentage | 10.00% | ||||||||||
Group, Voluntary & Worksite Benefits | One Group, Voluntary & Worksite Benefits Customer [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total revenues | $2,800 | $2,500 | $2,500 | ||||||||
Group, Voluntary & Worksite Benefits | One Group, Voluntary & Worksite Benefits Customer [Member] | Premiums, universal life and investment-type product policy fees and other revenues [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration Risk, Percentage | 11.00% | 10.00% | 11.00% |
Dispositions_Narrative_Details
Dispositions (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | $35 | $0 | $0 |
New England Securities Corporation [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | 35 | ||
Retained Earnings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | 35 | ||
Retained Earnings | New England Securities Corporation [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | $35 |
Insurance_Insurance_Liabilitie
Insurance (Insurance Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $219,144 | $210,132 |
Retail | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 91,868 | 91,575 |
Group, Voluntary & Worksite Benefits | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 28,805 | 28,035 |
Corporate Benefit Funding | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 97,953 | 89,941 |
Corporate & Other | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $518 | $581 |
Insurance_Liabilities_for_Guar
Insurance (Liabilities for Guarantees) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | $1,029 | $849 | $561 |
Incurred guaranteed benefits | 251 | 185 | 294 |
Paid guaranteed benefits | -3 | -5 | -6 |
Balance at December 31, | 1,277 | 1,029 | 849 |
Ceded | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 609 | 508 | 367 |
Incurred guaranteed benefits | -183 | 106 | 147 |
Paid guaranteed benefits | -3 | -5 | -6 |
Balance at December 31, | 423 | 609 | 508 |
Net | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 420 | 341 | 194 |
Incurred guaranteed benefits | 434 | 79 | 147 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 854 | 420 | 341 |
Variable Annuity [Member] | Guaranteed Minimum Death Benefit [Member] | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 148 | 109 | 84 |
Incurred guaranteed benefits | 51 | 44 | 31 |
Paid guaranteed benefits | -3 | -5 | -6 |
Balance at December 31, | 196 | 148 | 109 |
Variable Annuity [Member] | Guaranteed Minimum Income Benefit [Member] | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 390 | 332 | 158 |
Incurred guaranteed benefits | 68 | 58 | 174 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 458 | 390 | 332 |
Variable Annuity [Member] | Ceded | Guaranteed Minimum Death Benefit [Member] | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 120 | 86 | 62 |
Incurred guaranteed benefits | -80 | 39 | 30 |
Paid guaranteed benefits | -3 | -5 | -6 |
Balance at December 31, | 37 | 120 | 86 |
Variable Annuity [Member] | Ceded | Guaranteed Minimum Income Benefit [Member] | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 124 | 110 | 52 |
Incurred guaranteed benefits | -100 | 14 | 58 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 24 | 124 | 110 |
Variable Annuity [Member] | Net | Guaranteed Minimum Death Benefit [Member] | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 28 | 23 | 22 |
Incurred guaranteed benefits | 131 | 5 | 1 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 159 | 28 | 23 |
Variable Annuity [Member] | Net | Guaranteed Minimum Income Benefit [Member] | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 266 | 222 | 106 |
Incurred guaranteed benefits | 168 | 44 | 116 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 434 | 266 | 222 |
Universal and Variable Life Contracts | Secondary Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 417 | 340 | 261 |
Incurred guaranteed benefits | 124 | 77 | 79 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 541 | 417 | 340 |
Universal and Variable Life Contracts | Paid-Up Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 74 | 68 | 58 |
Incurred guaranteed benefits | 8 | 6 | 10 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 82 | 74 | 68 |
Universal and Variable Life Contracts | Ceded | Secondary Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 314 | 265 | 212 |
Incurred guaranteed benefits | -9 | 49 | 53 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 305 | 314 | 265 |
Universal and Variable Life Contracts | Ceded | Paid-Up Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 51 | 47 | 41 |
Incurred guaranteed benefits | 6 | 4 | 6 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 57 | 51 | 47 |
Universal and Variable Life Contracts | Net | Secondary Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 103 | 75 | 49 |
Incurred guaranteed benefits | 133 | 28 | 26 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 236 | 103 | 75 |
Universal and Variable Life Contracts | Net | Paid-Up Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 23 | 21 | 17 |
Incurred guaranteed benefits | 2 | 2 | 4 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | $25 | $23 | $21 |
Insurance_Fund_Groupings_Detai
Insurance (Fund Groupings) (Details) (Variable Annuity and Variable Life [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fund Groupings | ||
Fund Groupings | $52,465 | $52,126 |
Equity Funds [Member] | ||
Fund Groupings | ||
Fund Groupings | 24,995 | 24,915 |
Balanced Funds [Member] | ||
Fund Groupings | ||
Fund Groupings | 22,759 | 22,481 |
Bond Funds [Member] | ||
Fund Groupings | ||
Fund Groupings | 4,561 | 4,551 |
Money Market Funds [Member] | ||
Fund Groupings | ||
Fund Groupings | $150 | $179 |
Insurance_Guarantees_Related_t
Insurance (Guarantees Related to Annuity Contracts) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Variable Annuity Guarantees | Guaranteed Death Benefits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $62,810 | $62,763 |
Separate account value in event of death | 51,077 | 50,700 |
Net amount at risk in event of death | 702 | 641 |
Average attained age of contractholders | 65 years | 64 years |
Variable Annuity Guarantees | Guaranteed Annuitization Benefits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | 29,474 | 28,934 |
Separate account value at annuitization | 28,347 | 27,738 |
Net amount at risk at annuitization | 244 | 123 |
Average attained age of contractholders | 63 years | 62 years |
Two Tier and Other Annuities | Guaranteed Annuitization Benefits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | 456 | 397 |
Net amount at risk at annuitization | $153 | $123 |
Average attained age of contractholders | 55 years | 54 years |
Insurance_Guarantees_Related_t1
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) (Universal And Variable Life Contracts [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value (general and separate account) | $8,213 | $7,871 |
Net amount at risk | 78,758 | 81,888 |
Average attained age of policyholders | 54 years | 53 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value (general and separate account) | 1,091 | 1,125 |
Net amount at risk | $8,164 | $8,701 |
Average attained age of policyholders | 60 years | 59 years |
Insurance_Obligations_Under_Fu
Insurance (Obligations Under Funding Agreements - FHLB Common Stock) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Federal Home Loan Bank of New York [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank Stock | $661 | $700 |
Federal Home Loan Bank of Des Moines [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank Stock | $50 | $50 |
Insurance_Obligations_Under_Fu1
Insurance (Obligations Under Funding Agreements - Liability and Collateral) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fixed and Floating Rate Funding Agreements by Type [Line Items] | ||
Outstanding funding agreements to certain SPEs | $30,300 | $26,000 |
Invested Assets Pledged As Collateral | 20,712 | 19,555 |
Funding agreements - Federal Agricultural Mortgage Corporation [Member] | ||
Fixed and Floating Rate Funding Agreements by Type [Line Items] | ||
Outstanding funding agreements to certain SPEs | 2,550 | 2,550 |
Invested Assets Pledged As Collateral | 2,932 | 2,929 |
Federal Home Loan Bank of New York [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank amount of advances by branch for funding agreements | 12,570 | 12,770 |
Collateral pledged relating to obligations under funding agreements | 15,255 | 14,287 |
Federal Home Loan Bank of Des Moines [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank amount of advances by branch for funding agreements | 1,000 | 1,000 |
Collateral pledged relating to obligations under funding agreements | $1,141 | $1,118 |
Insurance_Liabilities_for_Unpa
Insurance (Liabilities for Unpaid Claims and Claim Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liabilities for Unpaid Claims and Claim Expenses | |||
Balance at January 1, | $7,022 | $6,826 | $6,622 |
Less: Reinsurance recoverables | 290 | 301 | 324 |
Net balance at January 1, | 6,732 | 6,525 | 6,298 |
Incurred related to: | |||
Current year | 5,099 | 4,762 | 4,320 |
Prior years | 0 | -12 | -42 |
Total incurred | 5,099 | 4,750 | 4,278 |
Paid related to: | |||
Current year | -3,228 | -3,035 | -2,626 |
Prior years | -1,579 | -1,508 | -1,425 |
Total paid | -4,807 | -4,543 | -4,051 |
Net balance at December 31, | 7,024 | 6,732 | 6,525 |
Add: Reinsurance recoverables | 286 | 290 | 301 |
Balance at December 31, | $7,310 | $7,022 | $6,826 |
Insurance_Insurance_Liabilitie1
Insurance (Insurance Liabilities Assumptions and Ratios - Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Liability for Future Policy Benefits and Policyholder Account Balances [Abstract] | |||
Participating business as a percentage of gross life insurance policies in-force | 5.00% | 5.00% | |
Participating business as a percentage of the gross life insurance premiums | 27.00% | 28.00% | 29.00% |
Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for individual and group traditional fixed annuities after annuitization | 1.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for non-medical health insurance | 4.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for disabled lives | 3.00% | ||
Interest rate range credited to policyholder account balances | 1.00% | ||
Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for individual and group traditional fixed annuities after annuitization | 11.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for non-medical health insurance | 7.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for disabled lives | 8.00% | ||
Interest rate range credited to policyholder account balances | 13.00% | ||
Participating Life Insurance Policies [Member] | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies, low end | 3.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies, high end | 7.00% | ||
Nonparticipating Life Insurance Policies [Member] | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies, low end | 2.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies, high end | 11.00% |
Insurance_Obligations_Under_Fu2
Insurance (Obligations Under Funding Agreements - Narrative) (Details) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Funding agreements issued to certain SPEs | $36.70 | $26.80 | $24.70 |
Funding agreements repaid to certain SPEs | 31.7 | 25.1 | 21.5 |
Outstanding funding agreements to certain SPEs | $30.30 | $26 |
Insurance_Separate_Accounts_Na
Insurance (Separate Accounts - Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance [Abstract] | |||
Pass-through separate accounts | $83,800,000,000 | $83,100,000,000 | |
Separate accounts with a guaranteed minimum return or account value | 55,500,000,000 | 51,700,000,000 | |
Gain (losses) on transfers of assets from the general account to the separate accounts | $0 | $0 | $0 |
Funding Agreements and Participating Close Out Contracts Included in Separate Accounts with a Guaranteed Minimum Return or Account Value [Member] | |||
Schedule Separate Accounts [Line Items] | |||
Average interest rate credited on separate accounts with a guaranteed minimum return or account value | 2.25% | 2.23% |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Beginning Balance of DAC | $6,338 | $5,752 | $6,244 |
Beginning Balance of VOBA | 78 | 80 | 97 |
Capitalizations of DAC | 424 | 562 | 632 |
Net investment gains (losses) of DAC and net derivative gains (losses) of DAC | -104 | 227 | -270 |
Other expenses of DAC | -583 | -478 | -709 |
Other expenses of VOBA | -8 | -10 | -12 |
Other | 0 | -220 | 0 |
Total amortization of DAC | -687 | -251 | -979 |
Total amortization of VOBA | -8 | -10 | -12 |
Unrealized investment gains (losses) of DAC | -170 | 495 | -145 |
Unrealized investment gains (losses) of VOBA | 0 | 8 | -5 |
Ending Balance of DAC | 5,905 | 6,338 | 5,752 |
Ending Balance of VOBA | 70 | 78 | 80 |
Balance at December 31 | $5,975 | $6,416 | $5,832 |
Deferred_Policy_Acquisition_Co3
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA by Segment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |||
DAC & VOBA | $5,975 | $6,416 | $5,832 |
Retail | |||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |||
DAC & VOBA | 5,544 | 5,990 | 5,407 |
Group, Voluntary & Worksite Benefits | |||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |||
DAC & VOBA | 324 | 333 | 337 |
Corporate Benefit Funding | |||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |||
DAC & VOBA | 106 | 93 | 88 |
Corporate & Other | |||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | |||
DAC & VOBA | $1 | $0 | $0 |
Deferred_Policy_Acquisition_Co4
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Deferred Sales Inducements) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DSI | |||
Balance at January 1, | $175 | $180 | $184 |
Capitalization | 10 | 15 | 22 |
Amortization | -28 | -20 | -26 |
Unrealized investment gains (losses) | -35 | 0 | 0 |
Balance at December 31, | $122 | $175 | $180 |
Deferred_Policy_Acquisition_Co5
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (VODA and VOCRA) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Balance at January 1, | $325 | $353 | $378 |
Amortization | -30 | -28 | -25 |
Balance at December 31, | 295 | 325 | 353 |
Accumulated amortization | $162 | $132 | $104 |
Deferred_Policy_Acquisition_Co6
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Estimated Future Amortization) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Estimated future amortization expense allocated to other expenses for VOBA [Abstract] | |
VOBA 2015 | $9 |
VOBA 2016 | 4 |
VOBA 2017 | 5 |
VOBA 2018 | 5 |
VOBA 2019 | 5 |
Value of Distribution Agreements and Customer Relationships Acquired [Abstract] | |
VODA and VOCRA 2015 | 30 |
VODA and VOCRA 2016 | 30 |
VODA and VOCRA 2017 | 28 |
VODA and VOCRA 2018 | 26 |
VODA and VOCRA 2019 | $24 |
Reinsurance_Effects_of_Reinsur
Reinsurance (Effects of Reinsurance on Earnings) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premiums: | |||
Direct premiums | $20,963 | $20,290 | $19,821 |
Reinsurance assumed | 1,673 | 1,469 | 1,350 |
Reinsurance ceded | -1,252 | -1,284 | -1,291 |
Net premiums | 21,384 | 20,475 | 19,880 |
Universal life and investment-type product policy fees: | |||
Direct universal life and investment-type product policy fees | 3,029 | 2,913 | 2,763 |
Reinsurance assumed | 48 | 41 | 39 |
Reinsurance ceded | -611 | -591 | -563 |
Net universal life and investment-type product policy fees | 2,466 | 2,363 | 2,239 |
Other revenues: | |||
Direct other revenues | 1,040 | 970 | 887 |
Reinsurance assumed | 2 | -2 | -6 |
Reinsurance ceded | 766 | 731 | 849 |
Net other revenues | 1,808 | 1,699 | 1,730 |
Policyholder benefits and claims: | |||
Direct policyholder benefits and claims | 23,978 | 23,305 | 22,677 |
Reinsurance assumed | 1,416 | 1,225 | 1,208 |
Reinsurance ceded | -1,539 | -1,498 | -1,616 |
Net policyholder benefits and claims | 23,855 | 23,032 | 22,269 |
Interest credited to policyholder account balances: | |||
Direct interest credited to policyholder account balances | 2,227 | 2,322 | 2,455 |
Reinsurance assumed | 35 | 35 | 33 |
Reinsurance ceded | -88 | -104 | -98 |
Net interest credited to policyholder account balances | 2,174 | 2,253 | 2,390 |
Other expenses: | |||
Direct other expenses | 5,132 | 5,028 | 5,328 |
Reinsurance assumed | 399 | 427 | 479 |
Reinsurance ceded | 540 | 533 | 587 |
Total other expenses | $6,071 | $5,988 | $6,394 |
Reinsurance_Effects_of_Reinsur1
Reinsurance (Effects of Reinsurance on Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Assets | |||
Premiums, reinsurance and other receivables | $23,439 | $23,637 | |
Deferred policy acquisition costs and value of business acquired | 5,975 | 6,416 | 5,832 |
Total assets | 29,414 | 30,053 | |
Liabilities: | |||
Future policy benefits | 117,402 | 111,963 | |
Policyholder account balances | 95,902 | 92,498 | 94,716 |
Other policy-related balances | 5,840 | 5,671 | |
Other Liabilities | 33,447 | 32,180 | |
Total liabilities | 252,591 | 242,312 | |
Assumed Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 649 | 527 | |
Deferred policy acquisition costs and value of business acquired | 391 | 330 | |
Total assets | 1,040 | 857 | |
Liabilities: | |||
Future policy benefits | 2,259 | 1,891 | |
Policyholder account balances | 301 | 252 | |
Other policy-related balances | 455 | 294 | |
Other Liabilities | 7,020 | 7,046 | |
Total liabilities | 10,035 | 9,483 | |
Ceded Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 21,079 | 21,410 | |
Deferred policy acquisition costs and value of business acquired | -418 | -481 | |
Total assets | 20,661 | 20,929 | |
Liabilities: | |||
Future policy benefits | 0 | 0 | |
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 32 | -39 | |
Other Liabilities | 16,077 | 16,444 | |
Total liabilities | 16,109 | 16,405 | |
Direct Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 1,711 | 1,700 | |
Deferred policy acquisition costs and value of business acquired | 6,002 | 6,567 | |
Total assets | 7,713 | 8,267 | |
Liabilities: | |||
Future policy benefits | 115,143 | 110,072 | |
Policyholder account balances | 95,601 | 92,246 | |
Other policy-related balances | 5,353 | 5,416 | |
Other Liabilities | 10,350 | 8,690 | |
Total liabilities | $226,447 | $216,424 |
Reinsurance_Effects_of_Affilia
Reinsurance (Effects of Affiliated Reinsurance on Earnings) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premiums: | |||
Reinsurance assumed | $1,673 | $1,469 | $1,350 |
Reinsurance ceded | -1,252 | -1,284 | -1,291 |
Net premiums | 21,384 | 20,475 | 19,880 |
Universal life and investment-type product policy fees: | |||
Reinsurance assumed | 48 | 41 | 39 |
Reinsurance ceded | -611 | -591 | -563 |
Net universal life and investment-type product policy fees | 2,466 | 2,363 | 2,239 |
Other revenues: | |||
Reinsurance assumed | 2 | -2 | -6 |
Reinsurance ceded | 766 | 731 | 849 |
Other revenues | 1,808 | 1,699 | 1,730 |
Policyholder benefits and claims: | |||
Reinsurance assumed | 1,416 | 1,225 | 1,208 |
Reinsurance ceded | -1,539 | -1,498 | -1,616 |
Net policyholder benefits and claims | 23,855 | 23,032 | 22,269 |
Interest credited to policyholder account balances: | |||
Direct interest credited to policyholder account balances | 2,227 | 2,322 | 2,455 |
Reinsurance assumed | 35 | 35 | 33 |
Reinsurance ceded | -88 | -104 | -98 |
Net interest credited to policyholder account balances | 2,174 | 2,253 | 2,390 |
Other expenses: | |||
Reinsurance assumed | 399 | 427 | 479 |
Reinsurance ceded | 540 | 533 | 587 |
Total other expenses | 6,071 | 5,988 | 6,394 |
Affiliated Entity [Member] | |||
Universal life and investment-type product policy fees: | |||
Net universal life and investment-type product policy fees | 129 | 127 | 108 |
Other revenues: | |||
Other revenues | 177 | 142 | 113 |
Affiliated Entity [Member] | Assumed Reinsurance [Member] | |||
Premiums: | |||
Reinsurance assumed | 681 | 451 | 319 |
Universal life and investment-type product policy fees: | |||
Reinsurance assumed | 48 | 40 | 39 |
Other revenues: | |||
Reinsurance assumed | 2 | -2 | -6 |
Policyholder benefits and claims: | |||
Reinsurance assumed | 623 | 402 | 334 |
Interest credited to policyholder account balances: | |||
Reinsurance assumed | 33 | 31 | 30 |
Other expenses: | |||
Reinsurance assumed | 298 | 326 | 357 |
Affiliated Entity [Member] | Ceded Reinsurance [Member] | |||
Premiums: | |||
Reinsurance ceded | -36 | -45 | -54 |
Universal life and investment-type product policy fees: | |||
Reinsurance ceded | -240 | -221 | -216 |
Other revenues: | |||
Reinsurance ceded | 713 | 675 | 790 |
Policyholder benefits and claims: | |||
Reinsurance ceded | -197 | -144 | -177 |
Interest credited to policyholder account balances: | |||
Reinsurance ceded | -88 | -102 | -98 |
Other expenses: | |||
Reinsurance ceded | 680 | 653 | 789 |
Affiliated Entity [Member] | Reinsurance [Member] | |||
Premiums: | |||
Net premiums | 645 | 406 | 265 |
Universal life and investment-type product policy fees: | |||
Net universal life and investment-type product policy fees | -192 | -181 | -177 |
Other revenues: | |||
Other revenues | 715 | 673 | 784 |
Policyholder benefits and claims: | |||
Net policyholder benefits and claims | 426 | 258 | 157 |
Interest credited to policyholder account balances: | |||
Net interest credited to policyholder account balances | -55 | -71 | -68 |
Other expenses: | |||
Total other expenses | $978 | $979 | $1,146 |
Reinsurance_Effects_of_Affilia1
Reinsurance (Effects of Affiliated Reinsurance on Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Assets | |||
Premiums, reinsurance and other receivables | $23,439 | $23,637 | |
Deferred policy acquisition costs and value of business acquired | 5,975 | 6,416 | 5,832 |
Total assets | 29,414 | 30,053 | |
Liabilities: | |||
Future policy benefits | 117,402 | 111,963 | |
Policyholder account balances | 95,902 | 92,498 | 94,716 |
Other policy-related balances | 5,840 | 5,671 | |
Other Liabilities | 33,447 | 32,180 | |
Total liabilities | 252,591 | 242,312 | |
Assumed Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 649 | 527 | |
Deferred policy acquisition costs and value of business acquired | 391 | 330 | |
Total assets | 1,040 | 857 | |
Liabilities: | |||
Future policy benefits | 2,259 | 1,891 | |
Policyholder account balances | 301 | 252 | |
Other policy-related balances | 455 | 294 | |
Other Liabilities | 7,020 | 7,046 | |
Total liabilities | 10,035 | 9,483 | |
Assumed Reinsurance [Member] | Affiliated Entity [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 257 | 109 | |
Deferred policy acquisition costs and value of business acquired | 370 | 309 | |
Total assets | 627 | 418 | |
Liabilities: | |||
Future policy benefits | 1,146 | 761 | |
Policyholder account balances | 288 | 239 | |
Other policy-related balances | 264 | 67 | |
Other Liabilities | 6,610 | 6,606 | |
Total liabilities | 8,308 | 7,673 | |
Ceded Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 21,079 | 21,410 | |
Deferred policy acquisition costs and value of business acquired | -418 | -481 | |
Total assets | 20,661 | 20,929 | |
Liabilities: | |||
Future policy benefits | 0 | 0 | |
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 32 | -39 | |
Other Liabilities | 16,077 | 16,444 | |
Total liabilities | 16,109 | 16,405 | |
Ceded Reinsurance [Member] | Affiliated Entity [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 15,453 | 15,748 | |
Deferred policy acquisition costs and value of business acquired | -231 | -273 | |
Total assets | 15,222 | 15,475 | |
Liabilities: | |||
Future policy benefits | 0 | 0 | |
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 32 | -39 | |
Other Liabilities | 13,545 | 14,044 | |
Total liabilities | $13,577 | $14,005 |
Reinsurance_Reinsurance_Narrat
Reinsurance (Reinsurance - Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Disclosures [Abstract] | ||
Deposit assets in premiums, reinsurance, and other receivables or secondary guarantee risk for reinsurance | $13,800,000,000 | $13,800,000,000 |
Deposit liabilities in other liabilities for reinsurance | 6,800,000,000 | 6,500,000,000 |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | 5,400,000,000 | 5,400,000,000 |
Mortality Risk [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of reinsured risk in, excess of stated amount | 90.00% | |
Retention amount | 2,000,000 | |
Mortality Risk on Case by Case Basis [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Percentage of reinsured risk in, excess of stated amount | 100.00% | |
Retention amount | 20,000,000 | |
Modified Coinsurance of Closed Block [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 59.25% | |
Living And Death Benefit Guarantees [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Assumed Fixed Maturities [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 90.00% | |
Certain Variable Annuity [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Ceded Credit Risk, Unsecured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | 2,300,000,000 | 2,400,000,000 |
Five Largest Ceded Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Five largest reinsurers, reinsurance recoverables amount | 4,400,000,000 | 4,400,000,000 |
Five largest reinsurers, reinsurance recoverables percentage | 82.00% | 82.00% |
Five Largest Ceded Reinsurers [Member] | Ceded Credit Risk, Unsecured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Five largest reinsurers, reinsurance recoverables amount | $1,800,000,000 | $1,800,000,000 |
Reinsurance_Related_Party_Rein
Reinsurance (Related Party Reinsurance Transactions - Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reinsurance Disclosures [Abstract] | |||
Net derivatives gains (losses) | ($170,000,000) | $135,000,000 | $598,000,000 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 507,000,000 | -168,000,000 | |
Other assets relating to variable interest entities | 4,469,000,000 | 4,716,000,000 | |
Other liabilities relating to variable interest entities | 33,447,000,000 | 32,180,000,000 | |
Future policy benefits | 117,402,000,000 | 111,963,000,000 | |
Premiums, reinsurance and other receivables | 23,439,000,000 | 23,637,000,000 | |
Deferred Policy Acquisition Costs and Value of Business Acquired | 5,975,000,000 | 6,416,000,000 | 5,832,000,000 |
Other Policy-Related Balances | 5,840,000,000 | 5,671,000,000 | |
Other Income | 1,808,000,000 | 1,699,000,000 | 1,730,000,000 |
Reinsurance Recoverables, Ceded | 5,400,000,000 | 5,400,000,000 | |
Deposit Contracts, Assets | 13,800,000,000 | 13,800,000,000 | |
Deposit Contracts, Liabilities | 6,800,000,000 | 6,500,000,000 | |
Ceded Credit Risk, Unsecured [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Reinsurance Recoverables, Ceded | 2,300,000,000 | 2,400,000,000 | |
Affiliated Entity [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Other Income | 177,000,000 | 142,000,000 | 113,000,000 |
Deposit Contracts, Assets | 11,700,000,000 | 11,800,000,000 | |
Deposit Contracts, Liabilities | 6,700,000,000 | 6,500,000,000 | |
Affiliated Entity [Member] | Ceded Credit Risk, Unsecured [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Reinsurance Recoverables, Ceded | 2,100,000,000 | 1,200,000,000 | |
Affiliated Entity [Member] | Closed Block Liabilities Ceded To MetLife Reinsurance Of Charleston [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 1,100,000,000 | 709,000,000 | |
Net derivatives gains (losses) | -389,000,000 | 664,000,000 | 135,000,000 |
Affiliated Entity [Member] | MLIC NY Separate Accts [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Other assets relating to variable interest entities | 192,000,000 | ||
Other liabilities relating to variable interest entities | 572,000,000 | ||
Future policy benefits | 128,000,000 | ||
Cash, Cash Equivalents, and Short-term Investments | 494,000,000 | ||
Affiliated Entity [Member] | Ceded Guaranteed Minimum Benefit [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Net derivatives gains (losses) | 497,000,000 | -1,700,000,000 | 14,000,000 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 657,000,000 | -62,000,000 | |
Affiliated Entity [Member] | Funds Withheld On Ceded Reinsurance [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Coinsurance Funds Withheld Basis, Percent | 75.00% | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 20,000,000 | -11,000,000 | |
Net derivatives gains (losses) | -39,000,000 | 40,000,000 | -9,000,000 |
Affiliated Entity [Member] | Co-funds Withheld Exeter [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Coinsurance Funds Withheld Basis, Percent | 75.00% | ||
Other liabilities relating to variable interest entities | 432,000,000 | ||
Premiums, reinsurance and other receivables | 492,000,000 | ||
Deferred Policy Acquisition Costs and Value of Business Acquired | 30,000,000 | ||
Other Policy-Related Balances | 9,000,000 | ||
Affiliated Entity [Member] | Guarantee Minimum Benefits Exeter [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Other liabilities relating to variable interest entities | 447,000,000 | ||
Cash, Cash Equivalents, and Short-term Investments | 324,000,000 | ||
Premiums, reinsurance and other receivables | 719,000,000 | ||
Deferred Policy Acquisition Costs and Value of Business Acquired | 7,000,000 | ||
Other Income | 54,000,000 | ||
Affiliated Entity [Member] | Variable Annuity FMLI [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Other liabilities relating to variable interest entities | 269,000,000 | ||
Cash, Cash Equivalents, and Short-term Investments | $218,000,000 | ||
Modco Variable Annuity Percentage | 100.00% |
Closed_Block_Liabilities_and_A
Closed Block (Liabilities and Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Closed Block Liabilities | ||||
Future policy benefits | $41,667 | $42,076 | ||
Other policy-related balances | 265 | 298 | ||
Policyholder dividends payable | 461 | 456 | ||
Policyholder dividend obligation | 3,155 | 1,771 | 3,828 | 2,919 |
Current income tax payable | 1 | 18 | ||
Other liabilities | 646 | 582 | ||
Total closed block liabilities | 46,195 | 45,201 | ||
Assets Designated to the Closed Block | ||||
Fixed maturity securities available-for-sale, at estimated fair value | 29,199 | 28,374 | ||
Equity securities available-for-sale, at estimated fair value | 91 | 86 | ||
Mortgage loans | 6,076 | 6,155 | ||
Policy loans | 4,646 | 4,669 | ||
Real estate and real estate joint ventures | 666 | 492 | ||
Other invested assets | 1,065 | 814 | ||
Total investments | 41,743 | 40,590 | ||
Cash and cash equivalents | 227 | 238 | ||
Accrued investment income | 477 | 477 | ||
Premiums, reinsurance and other receivables | 67 | 98 | ||
Deferred income tax assets | 289 | 293 | ||
Total assets designated to the closed block | 42,803 | 41,696 | ||
Excess of closed block liabilities over assets designated to the closed block | 3,392 | 3,505 | ||
Amounts included in AOCI | ||||
Unrealized investment gains (losses), net of income tax | 2,291 | 1,502 | ||
Unrealized gains (losses) on derivatives, net of income tax | 28 | -3 | ||
Allocated to policyholder dividend obligation, net of income tax | -2,051 | -1,151 | ||
Total amounts included in AOCI | 268 | 348 | ||
Maximum future earnings to be recognized from closed block assets and liabilities | $3,660 | $3,853 |
Closed_Block_Policyholder_Divi
Closed Block (Policyholder Dividend Obligation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Closed block policyholder dividend obligation | |||
Balance at January 1, | $1,771 | $3,828 | $2,919 |
Change in unrealized investment and derivative gains (losses) | 1,384 | -2,057 | 909 |
Balance at December 31, | $3,155 | $1,771 | $3,828 |
Closed_Block_Revenues_and_Expe
Closed Block (Revenues and Expenses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Premiums | $1,918 | $1,987 | $2,139 |
Net investment income | 2,093 | 2,130 | 2,188 |
Net investment gains (losses) | 7 | 25 | 61 |
Net derivative gains (losses) | 20 | -6 | -12 |
Total revenues | 4,038 | 4,136 | 4,376 |
Expenses | |||
Policyholder benefits and claims | 2,598 | 2,702 | 2,783 |
Policyholder dividends | 988 | 979 | 1,072 |
Other expenses | 155 | 165 | 179 |
Total expenses | 3,741 | 3,846 | 4,034 |
Revenues, net of expenses before provision for income tax expense (benefit) | 297 | 290 | 342 |
Provision for income tax expense (benefit) | 104 | 101 | 120 |
Revenues, net of expenses and provision for income tax expense (benefit) from continuing operations | 193 | 189 | 222 |
Revenues, net of expenses and provision for income tax expense (benefit) from discontinued operations | 0 | 0 | 10 |
Revenues, net of expenses and provision for income tax expense (benefit) | $193 | $189 | $232 |
Investments_Fixed_Maturity_and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | $173,604 | $165,371 | |
Cost or Amortized Cost | 1,926 | 1,813 | |
Gross Unrealized OTTI Loss | 66 | 149 | 256 |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 188,911 | 173,746 | |
Equity securities | 2,065 | 1,892 | |
Fixed maturity securities | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 173,604 | 165,371 | |
Gross Unrealized Gain | 16,672 | 10,953 | |
Gross Unrealized Temporary Loss | 1,299 | 2,429 | |
Gross Unrealized OTTI Loss | 66 | 149 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 188,911 | 173,746 | |
U.S. corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 59,532 | 60,244 | |
Gross Unrealized Gain | 6,246 | 4,678 | |
Gross Unrealized Temporary Loss | 421 | 693 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 65,357 | 64,229 | |
U.S. Treasury and agency | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 34,391 | 29,508 | |
Gross Unrealized Gain | 4,698 | 1,730 | |
Gross Unrealized Temporary Loss | 19 | 694 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 39,070 | 30,544 | |
Foreign corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 28,395 | 27,082 | |
Gross Unrealized Gain | 1,934 | 1,959 | |
Gross Unrealized Temporary Loss | 511 | 285 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 29,818 | 28,756 | |
RMBS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 26,893 | 24,119 | |
Gross Unrealized Gain | 1,493 | 1,109 | |
Gross Unrealized Temporary Loss | 157 | 368 | |
Gross Unrealized OTTI Loss | 66 | 150 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 28,163 | 24,710 | |
CMBS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 7,705 | 8,203 | |
Gross Unrealized Gain | 241 | 262 | |
Gross Unrealized Temporary Loss | 33 | 89 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 7,913 | 8,376 | |
ABS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 8,206 | 7,789 | |
Gross Unrealized Gain | 102 | 151 | |
Gross Unrealized Temporary Loss | 82 | 117 | |
Gross Unrealized OTTI Loss | 0 | -1 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 8,226 | 7,824 | |
State and political subdivision | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 5,329 | 5,386 | |
Gross Unrealized Gain | 1,197 | 467 | |
Gross Unrealized Temporary Loss | 6 | 76 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 6,520 | 5,777 | |
Foreign government | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 3,153 | 3,040 | |
Gross Unrealized Gain | 761 | 597 | |
Gross Unrealized Temporary Loss | 70 | 107 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | 3,844 | 3,530 | |
Equity securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 1,926 | 1,813 | |
Gross Unrealized Gain | 195 | 159 | |
Gross Unrealized Temporary Loss | 56 | 80 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 2,065 | 1,892 | |
Common stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 1,236 | 1,070 | |
Gross Unrealized Gain | 142 | 97 | |
Gross Unrealized Temporary Loss | 26 | 3 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 1,352 | 1,164 | |
Non-redeemable preferred stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 690 | 743 | |
Gross Unrealized Gain | 53 | 62 | |
Gross Unrealized Temporary Loss | 30 | 77 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | $713 | $728 |
Investments_Maturities_of_Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $5,841 | $6,411 |
Amortized Cost, Due after one year through five years | 36,600 | 34,696 |
Amortized Cost, Due after five years through ten years | 39,257 | 35,725 |
Amortized Cost, Due after ten years | 49,102 | 48,428 |
Amortized Cost, RMBS, CMBS and ABS | 42,804 | 40,111 |
Amortized Cost, Subtotal | 173,604 | 165,371 |
Estimated Fair Value, Due in one year or less | 5,902 | 6,516 |
Estimated Fair Value, Due after one year through five years | 38,115 | 36,556 |
Estimated Fair Value, Due after five years through ten years | 41,519 | 38,347 |
Estimated Fair Value, Due after ten years | 59,073 | 51,417 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 130,800 | 125,260 |
Estimated Fair Value, Subtotal | 144,609 | 132,836 |
Estimated fair value, Mortgage-backed and asset-backed securities | 44,302 | 40,910 |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $173,604 and $165,371, respectively; includes $160 and $157, respectively, relating to variable interest entities) | $188,911 | $173,746 |
Investments_Continuous_Gross_U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Total number of securities in an unrealized loss position less than 12 months | 1,997 | 2,211 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 642 | 469 |
Fixed maturity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | $27,348 | $36,223 |
Less than 12 Months Gross Unrealized Loss | 823 | 1,820 |
Equal to or Greater than 12 Months Estimated Fair Value | 7,832 | 5,505 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 542 | 758 |
U.S. corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 8,950 | 8,512 |
Less than 12 Months Gross Unrealized Loss | 260 | 426 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,251 | 1,948 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 161 | 267 |
U.S. Treasury and agency | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,933 | 10,077 |
Less than 12 Months Gross Unrealized Loss | 6 | 687 |
Equal to or Greater than 12 Months Estimated Fair Value | 982 | 33 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 13 | 7 |
Foreign corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 7,052 | 4,217 |
Less than 12 Months Gross Unrealized Loss | 397 | 176 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,165 | 952 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 114 | 109 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,141 | 8,194 |
Less than 12 Months Gross Unrealized Loss | 63 | 291 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,900 | 1,675 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 160 | 227 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 772 | 2,022 |
Less than 12 Months Gross Unrealized Loss | 20 | 74 |
Equal to or Greater than 12 Months Estimated Fair Value | 461 | 221 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 13 | 15 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,147 | 1,701 |
Less than 12 Months Gross Unrealized Loss | 45 | 28 |
Equal to or Greater than 12 Months Estimated Fair Value | 732 | 530 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 37 | 88 |
State and political subdivision | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 26 | 737 |
Less than 12 Months Gross Unrealized Loss | 0 | 44 |
Equal to or Greater than 12 Months Estimated Fair Value | 76 | 92 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 6 | 32 |
Foreign government | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 327 | 763 |
Less than 12 Months Gross Unrealized Loss | 32 | 94 |
Equal to or Greater than 12 Months Estimated Fair Value | 265 | 54 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 38 | 13 |
Equity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 130 | 259 |
Less than 12 Months Gross Unrealized Loss | 26 | 44 |
Equal to or Greater than 12 Months Estimated Fair Value | 140 | 125 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 30 | 36 |
Common stock | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 98 | 37 |
Less than 12 Months Gross Unrealized Loss | 26 | 3 |
Equal to or Greater than 12 Months Estimated Fair Value | 1 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
Non-redeemable preferred stock | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 32 | 222 |
Less than 12 Months Gross Unrealized Loss | 0 | 41 |
Equal to or Greater than 12 Months Estimated Fair Value | 139 | 125 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $30 | $36 |
Investments_Mortgage_Loans_by_
Investments (Mortgage Loans by Portfolio Segment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Company-held mortgage loans held-for-investment, net | ||||
Commercial mortgage loans | $32,482 | $33,072 | ||
Percentage of loans receivable on commercial mortgage loans | 66.20% | 71.90% | ||
Agricultural mortgage loans | 11,033 | 11,025 | ||
Percentage of loans receivable on agricultural mortgage loans | 22.50% | 24.00% | ||
Residential mortgage loans | 5,494 | 1,858 | ||
Percentage of loans receivable on residential mortgage loans | 11.20% | 4.00% | ||
Subtotal | 49,009 | 45,955 | ||
Percentage of loans receivable on subtotal | 99.90% | 99.90% | ||
Valuation allowances | -258 | -272 | -304 | -393 |
Percentage of loans receivable on valuation allowances | -0.50% | -0.60% | ||
Subtotal mortgage loans held-for-investment, net | 48,751 | 45,683 | ||
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 99.40% | 99.30% | ||
Residential — FVO | 308 | 338 | ||
Percentage of residential mortgage loans - FVO | 0.60% | 0.70% | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 49,059 | 46,021 | ||
Percentage of loans receivable on mortgage loans, at estimated fair value | 100.00% | 100.00% | ||
Mortgage loans held-for-sale | 0 | 3 | ||
Percentage of mortgage loans held-for-sale | 0.00% | 0.00% | ||
Total mortgage loans, net | $49,059 | $46,024 | ||
Percentage of loans held for sale on total mortgage loans, net | 100.00% | 100.00% |
Investments_Mortgage_Loans_and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $122,000,000 | $237,000,000 |
Recorded Investment | 120,000,000 | 231,000,000 |
Valuation Allowances | 26,000,000 | 56,000,000 |
Unpaid Principal Balance | 138,000,000 | 287,000,000 |
Recorded Investment | 134,000,000 | 284,000,000 |
Recorded Investment | 48,755,000,000 | 45,440,000,000 |
Valuation Allowances | 232,000,000 | 216,000,000 |
Carrying Value | 228,000,000 | 459,000,000 |
Average Recorded Investment | 391,000,000 | 583,000,000 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 75,000,000 | 173,000,000 |
Recorded Investment | 75,000,000 | 169,000,000 |
Valuation Allowances | 24,000,000 | 49,000,000 |
Unpaid Principal Balance | 84,000,000 | 247,000,000 |
Recorded Investment | 84,000,000 | 246,000,000 |
Recorded Investment | 32,323,000,000 | 32,657,000,000 |
Valuation Allowances | 158,000,000 | 164,000,000 |
Carrying Value | 135,000,000 | 366,000,000 |
Average Recorded Investment | 298,000,000 | 430,000,000 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 47,000,000 | 64,000,000 |
Recorded Investment | 45,000,000 | 62,000,000 |
Valuation Allowances | 2,000,000 | 7,000,000 |
Unpaid Principal Balance | 14,000,000 | 35,000,000 |
Recorded Investment | 13,000,000 | 34,000,000 |
Recorded Investment | 10,975,000,000 | 10,929,000,000 |
Valuation Allowances | 33,000,000 | 33,000,000 |
Carrying Value | 56,000,000 | 89,000,000 |
Average Recorded Investment | 76,000,000 | 151,000,000 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 40,000,000 | 5,000,000 |
Recorded Investment | 37,000,000 | 4,000,000 |
Recorded Investment | 5,457,000,000 | 1,854,000,000 |
Valuation Allowances | 41,000,000 | 19,000,000 |
Carrying Value | 37,000,000 | 4,000,000 |
Average Recorded Investment | $17,000,000 | $2,000,000 |
Investments_Valuation_Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | $272 | $304 | $393 |
Provision (release) | -15 | 21 | 48 |
Charge-offs, net of recoveries | 29 | 11 | 36 |
Transfers to held-for-sale | 0 | 0 | -5 |
Ending Balance | 258 | 272 | 304 |
Commercial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 213 | 256 | 318 |
Provision (release) | 8 | 43 | 50 |
Charge-offs, net of recoveries | 23 | 0 | 12 |
Transfers to held-for-sale | 0 | 0 | 0 |
Ending Balance | 182 | 213 | 256 |
Agricultural | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 40 | 48 | 75 |
Provision (release) | 4 | -3 | -2 |
Charge-offs, net of recoveries | 1 | 11 | 24 |
Transfers to held-for-sale | 0 | 0 | -5 |
Ending Balance | 35 | 40 | 48 |
Residential | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 19 | 0 | 0 |
Provision (release) | -27 | -19 | 0 |
Charge-offs, net of recoveries | 5 | 0 | 0 |
Transfers to held-for-sale | 0 | 0 | 0 |
Ending Balance | $41 | $19 | $0 |
Investments_Credit_Quality_of_
Investments (Credit Quality of Commercial Mortgage Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $32,482 | $33,072 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | 34,039 | 34,297 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 28,317 | 25,657 |
% of Total | 87.20% | 77.60% |
Estimated Fair Value | 29,860 | 26,900 |
% of Total | 87.70% | 78.40% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 3,260 | 5,761 |
% of Total | 10.00% | 17.40% |
Estimated Fair Value | 3,322 | 5,852 |
% of Total | 9.80% | 17.10% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 117 | 790 |
% of Total | 0.40% | 2.40% |
Estimated Fair Value | 121 | 776 |
% of Total | 0.30% | 2.30% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 788 | 864 |
% of Total | 2.40% | 2.60% |
Estimated Fair Value | 736 | 769 |
% of Total | 2.20% | 2.20% |
Greater than 1.20x [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 30,086 | 30,831 |
Greater than 1.20x [Member] | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 26,810 | 24,585 |
Greater than 1.20x [Member] | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 2,783 | 5,219 |
Greater than 1.20x [Member] | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 109 | 444 |
Greater than 1.20x [Member] | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 384 | 583 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,393 | 1,276 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 746 | 476 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 391 | 438 |
1.00x - 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 157 |
1.00x - 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 256 | 205 |
Less than 1.00x [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,003 | 965 |
Less than 1.00x [Member] | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 761 | 596 |
Less than 1.00x [Member] | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 86 | 104 |
Less than 1.00x [Member] | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 8 | 189 |
Less than 1.00x [Member] | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $148 | $76 |
Investments_Credit_Quality_of_1
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $11,033 | $11,025 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | 5,494 | 1,858 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | 10,462 | 10,165 |
% of Total | 94.80% | 92.20% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | 469 | 659 |
% of Total | 4.20% | 6.00% |
76% to 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | 17 | 84 |
% of Total | 0.20% | 0.80% |
Greater than 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | 85 | 117 |
% of Total | 0.80% | 1.00% |
Performing | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | 5,345 | 1,812 |
% of Total | 97.30% | 97.50% |
Nonperforming | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $149 | $46 |
% of Total | 2.70% | 2.50% |
Investments_Past_Due_and_Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due | $150 | $90 |
Nonaccrual Status | 265 | 262 |
Commercial | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due | 0 | 0 |
Nonaccrual Status | 75 | 169 |
Agricultural | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due | 1 | 44 |
Nonaccrual Status | 41 | 47 |
Residential | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due | 149 | 46 |
Nonaccrual Status | $149 | $46 |
Investments_Investment_in_Leve
Investments (Investment in Leverage Leases) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment in leveraged leases | ||
Rental receivables, net | $1,320 | $1,393 |
Estimated residual values | 827 | 853 |
Subtotal | 2,147 | 2,246 |
Unearned income | -686 | -742 |
Investment in leases, net of non-recourse debt | 1,461 | 1,504 |
Rental receivables, net | 406 | 413 |
Estimated residual values | 57 | 52 |
Subtotal | 463 | 465 |
Unearned income | -178 | -177 |
Investment in leases, net of non-recourse debt | $285 | $288 |
Investments_Components_on_Inco
Investments (Components on Income from Investment in Leverage Leases) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Income from Investment in leveraged leases | |||
Income from investment in leases | $51,000,000 | $60,000,000 | $34,000,000 |
Less: Income tax expense on leases | 18,000,000 | 21,000,000 | 12,000,000 |
Investment income after income tax | 33,000,000 | 39,000,000 | 22,000,000 |
Income from investment in leases | 19,000,000 | 17,000,000 | 15 |
Less: Income tax expense on leases | 7,000,000 | 6,000,000 | 5 |
Investment income after income tax | $12,000,000 | $11,000,000 | $10 |
Investments_Net_Unrealized_Inv
Investments (Net Unrealized Investment Gains Losses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||||
Fixed maturity securities | $15,374 | $8,521 | $19,120 | |
Fixed maturity securities with noncredit OTTI losses in AOCI | -66 | -149 | -256 | |
Total fixed maturity securities | 15,308 | 8,372 | 18,864 | |
Equity securities | 173 | 83 | -13 | |
Derivatives | 1,649 | 361 | 1,052 | |
Short-term investments | 0 | 0 | -2 | |
Other | 87 | 5 | 18 | |
Subtotal | 17,217 | 8,821 | 19,919 | |
Future policy benefits | -1,964 | -610 | -5,120 | |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | -3 | 5 | 12 | |
DAC, VOBA and DSI | -918 | -721 | -1,231 | |
Policyholder dividend obligation | -3,155 | -1,771 | -3,828 | |
Subtotal | -6,040 | -3,097 | -10,167 | |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 25 | 51 | 86 | |
Deferred income tax benefit (expense) | -3,928 | -2,070 | -3,498 | |
Net unrealized investment gains (losses) | 7,274 | 3,705 | 6,340 | |
Net unrealized investment gains (losses) attributable to noncontrolling interests | -1 | -1 | -1 | |
Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $7,273 | $3,704 | $6,339 | $4,868 |
Investments_Changes_in_Fixed_M
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | ||
Balance at January 1, | ($149) | ($256) |
Noncredit OTTI losses recognized | 10 | 47 |
Securities sold with previous noncredit OTTI loss | 41 | 114 |
Subsequent changes in estimated fair value | 32 | -54 |
Balance at December 31, | ($66) | ($149) |
Investments_Changes_in_Net_Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |||
Balance at January 1, | $3,704 | $6,339 | $4,868 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | 83 | 107 | 266 |
Unrealized investment gains (losses) during the year | 8,313 | -11,205 | 4,679 |
Unrealized investment gains (losses) relating to: | |||
Future policy benefits | -1,354 | 4,510 | -1,625 |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | -8 | -7 | -21 |
DAC, VOBA and DSI | -197 | 510 | -129 |
Policyholder dividend obligation | -1,384 | 2,057 | -909 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | -26 | -35 | -86 |
Deferred income tax benefit (expense) | 1,858 | -1,428 | 704 |
Net unrealized investment gains (losses) | 7,273 | 3,704 | 6,339 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 0 | 0 |
Balance at December 31, | 7,273 | 3,704 | 6,339 |
Change in net unrealized investment gains (losses) | 3,569 | -2,635 | 1,471 |
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 0 | 0 |
Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $3,569 | ($2,635) | $1,471 |
Investments_Securities_Lending
Investments (Securities Lending) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities Financing Transaction [Line Items] | ||
Total cash collateral liability | $21,635 | $19,673 |
Security collateral on deposit from counterparties | 19 | 0 |
Reinvestment portfolio — estimated fair value | 22,046 | 19,822 |
Securities Financing Transaction, Cost [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 19,099 | 18,829 |
Securities Financing Transaction, Fair Value [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $21,185 | $19,153 |
Investments_Invested_Assets_on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $1,421 | $1,338 |
Invested assets pledged as collateral | 20,712 | 19,555 |
Total invested assets on deposit and pledged as collateral | $22,133 | $20,893 |
Investments_PCI_Investments_by
Investments (PCI Investments by Invested Asset Class) (Details) (Fixed maturity securities, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fixed maturity securities | ||
Purchased credit impaired investments, by invested asset class, held: | ||
Outstanding principal and interest balance | $4,614 | $4,653 |
Carrying value | $3,651 | $3,601 |
Investments_PCI_Investments_Ac
Investments (PCI Investments Acquired) (Details) (Fixed maturity securities, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fixed maturity securities | ||
Purchased credit impaired investments as of their respective acquisition dates | ||
Contractually required payments (including interest) | $820 | $1,612 |
Cash flows expected to be collected | 644 | 1,248 |
Fair value of investments acquired | $433 | $841 |
Investments_Activity_For_Accre
Investments (Activity For Accretable Yield on PCI Investments) (Details) (Fixed maturity securities, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accretable yield on purchased distressed assets acquired | ||
Accretable yield, January 1, | $2,431 | $2,357 |
Accretion recognized in earnings | -217 | -236 |
Disposals | -47 | -144 |
Reclassification (to) from nonaccretable difference | -495 | 47 |
Accretable yield, December 31, | 1,883 | 2,431 |
Investments Purchased [Member] | ||
Accretable yield on purchased distressed assets acquired | ||
Investments purchased | $211 | $407 |
Investments_Consolidated_Varia
Investments (Consolidated Variable Interest Entities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $284 | $1,506 |
Total Liabilities | 108 | 552 |
Fixed Maturities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 163 | 159 |
Total Liabilities | 78 | 80 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 59 | 82 |
Total Liabilities | 0 | 7 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 37 | 61 |
Total Liabilities | 0 | 0 |
Consolidated Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 16 | 23 |
Total Liabilities | 15 | 22 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 9 | 1,181 |
Total Liabilities | $15 | $443 |
Investments_Unconsolidated_Var
Investments (Unconsolidated Variable Interest Entities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | $51,678 | $47,858 |
Total Liabilities | 53,131 | 49,317 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 52 | 31 |
Total Liabilities | 74 | 31 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 3,722 | 3,168 |
Total Liabilities | 4,833 | 4,273 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 1,683 | 1,498 |
Total Liabilities | 2,003 | 1,852 |
Structured securities (RMBS, CMBS, and ABS) [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 44,302 | 40,910 |
Total Liabilities | 44,302 | 40,910 |
U.S. and foreign corporate | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 1,919 | 2,251 |
Total Liabilities | $1,919 | $2,251 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net investment income | $11,893 | $11,785 | $11,852 |
Less: Investment expenses | 838 | 844 | 743 |
Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net investment income | 1 | 3 | 4 |
Debt Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 8,260 | 8,279 | 8,295 |
Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 86 | 78 | 68 |
Actively Traded Securities At Estimated Fair Value And Fvo General Account Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 23 | 43 | 77 |
Mortgage loans | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 2,378 | 2,405 | 2,528 |
Policy loans | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 448 | 440 | 451 |
Real estate and real estate joint ventures | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 725 | 699 | 593 |
Other limited partnership interests | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 721 | 633 | 555 |
Cash, cash equivalents and short-term investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 26 | 32 | 19 |
Operating joint ventures | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 2 | -4 | -2 |
Other Investments [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 61 | 21 | 7 |
Securities Investment [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net investment income | 11,892 | 11,782 | 11,848 |
Gross Investment Income, Operating | 12,730 | 12,626 | 12,591 |
Available-for-sale Securities [Member] | Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net investment income | $1 | $3 | $4 |
Investments_Components_of_Net_
Investments (Components of Net Investment Gains Losses) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Marketable Securities, Gain (Loss) [Abstract] | |||
Fixed maturity securities — net gains (losses) on sales and disposals | ($99,000,000) | $177,000,000 | $16,000,000 |
Equity securities — net gains (losses) on sales and disposals | 42,000,000 | 6,000,000 | 15,000,000 |
Other net investment gains (losses): | |||
Trading and FVO securities — FVO general account securities | 1,000,000 | 11,000,000 | 11,000,000 |
Mortgage loans | -36,000,000 | 31,000,000 | 84,000,000 |
Real estate and real estate joint ventures | 252,000,000 | -15,000,000 | -27,000,000 |
Other limited partnership interests | -69,000,000 | -41,000,000 | -35,000,000 |
Other investment portfolio gains (losses) | -108,000,000 | 5,000,000 | -192,000,000 |
Subtotal — investment portfolio gains (losses) | -64,000,000 | 27,000,000 | -327,000,000 |
FVO CSEs - changes in estimated fair value subsequent to consolidation: | |||
Securities | 0 | 2,000,000 | 0 |
Long-term debt — related to securities | -1,000,000 | -2,000,000 | -7,000,000 |
Non-investment portfolio gains (losses) | 208,000,000 | 21,000,000 | 4,000,000 |
Subtotal FVO CSEs and non-investment portfolio gains (losses) | 207,000,000 | 21,000,000 | -3,000,000 |
Total net investment gains (losses) | 143,000,000 | 48,000,000 | -330,000,000 |
Fixed maturity securities | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | -26,000,000 | -128,000,000 | -192,000,000 |
Net investment gains (losses) | -125,000,000 | 49,000,000 | -176,000,000 |
Consumer | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | -6,000,000 | -12,000,000 | -19,000,000 |
Utility | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | -48,000,000 | -29,000,000 |
Finance | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | -4,000,000 | -21,000,000 |
Communications | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | -2,000,000 | -18,000,000 |
Industrial | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | 0 | -4,000,000 |
Transportation | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | 0 | -1,000,000 |
Corporate fixed maturity securities [Member] | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | -6,000,000 | -66,000,000 | -92,000,000 |
RMBS | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | -20,000,000 | -62,000,000 | -70,000,000 |
CMBS | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | 0 | -28,000,000 |
ABS | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | 0 | 0 | -2,000,000 |
Equity securities | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | -21,000,000 | -19,000,000 | -7,000,000 |
Net investment gains (losses) | 21,000,000 | -13,000,000 | 8,000,000 |
Non-redeemable preferred stock | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | -16,000,000 | -17,000,000 | 0 |
Common stock | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses (1) | ($5,000,000) | ($2,000,000) | ($7,000,000) |
Investments_Sales_or_Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fixed maturity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | $44,906,000,000 | $45,538,000,000 | $29,472,000,000 |
Gross investment gains | 260,000,000 | 556,000,000 | 327,000,000 |
Gross investment losses | -359,000,000 | -379,000,000 | -311,000,000 |
Total OTTI losses: | |||
OTTI losses (1) | -26,000,000 | -128,000,000 | -192,000,000 |
Net investment gains (losses) | -125,000,000 | 49,000,000 | -176,000,000 |
Equity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | 128,000,000 | 144,000,000 | 126,000,000 |
Gross investment gains | 46,000,000 | 25,000,000 | 23,000,000 |
Gross investment losses | -4,000,000 | -19,000,000 | -8,000,000 |
Total OTTI losses: | |||
OTTI losses (1) | -21,000,000 | -19,000,000 | -7,000,000 |
Net investment gains (losses) | $21,000,000 | ($13,000,000) | $8,000,000 |
Investments_Credit_Loss_Rollfo
Investments (Credit Loss Rollforward) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at January 1, | $277 | $285 |
Additions: | ||
Initial impairments — credit loss OTTI recognized on securities not previously impaired | 1 | 4 |
Additional impairments — credit loss OTTI recognized on securities previously impaired | 15 | 54 |
Reductions: | ||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | -30 | -65 |
Securities impaired to net present value of expected future cash flows | 0 | 0 |
Increases in cash flows — accretion of previous credit loss OTTI | 0 | -1 |
Balance at December 31, | $263 | $277 |
Investments_Related_Party_Inve
Investments (Related Party Investment Transactions) (Details) (Affiliated Entity [Member], USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Affiliated Entity [Member] | ||||
Invested Assets Transferred To And From Affiliates | ||||
Estimated fair value of invested assets transferred to affiliates | $97 | $781 | $4 | |
Amortized cost of invested assets transferred to affiliates | 89 | 688 | 4 | |
Net investment gains (losses) recognized on transfers | 8 | 93 | 0 | |
Estimated fair value of invested assets transferred from affiliates | $437 | $882 | $882 | $0 |
Investments_Fixed_Maturity_and1
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | $188,911 | $173,746 | |
Gross Unrealized OTTI Loss | 66 | 149 | 256 |
Asset-backed Securities [Member] | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 8,226 | 7,824 | |
Gross Unrealized OTTI Loss | 0 | -1 | |
Gross Unrealized Gain | 102 | 151 | |
Fixed maturity securities | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 6 | 38 | |
Gross Unrealized Gain | $5 | $12 |
Investments_Evaluation_of_Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities available-for-sale with gross unrealized loss of equal to or greater than stated percentage | 20.00% | |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Change in Gross Unrealized Temporary Loss | $1,200 | |
Gross Unrealized Temporary Loss | 1,400 | 2,600 |
Gross Unrealized Temporary Loss | 542 | 758 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Change in Gross Unrealized Temporary Loss | -24 | |
Gross Unrealized Temporary Loss | 56 | 80 |
Gross Unrealized Temporary Loss | 30 | 36 |
Non-redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Temporary Loss | 30 | 36 |
20% or more [Member] | Six months or greater [Member] | Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Temporary Loss | 67 | |
Number of Securities | 27 | |
20% or more [Member] | Six months or greater [Member] | Fixed maturity securities | Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Temporary Loss | 24 | |
Number of Securities | 12 | |
Percentage of gross unrealized loss | 36.00% | |
20% or more [Member] | Six months or greater [Member] | Fixed maturity securities | Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Temporary Loss | 43 | |
Number of Securities | 15 | |
Percentage of gross unrealized loss | 64.00% | |
20% or more [Member] | Twelve months or greater [Member] | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | 6 | |
Gross Unrealized Temporary Loss | $23 | |
20% or more [Member] | Twelve months or greater [Member] | Non-redeemable preferred stock | Aaa/Aa/A | Financial Services Industry [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of gross unrealized loss | 26.00% |
Investments_Mortgage_Loans_Nar
Investments (Mortgage Loans - Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | $391,000,000 | $583,000,000 | |
Financing Receivable, Significant Purchases | 4,700,000,000 | 2,200,000,000 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | |
Agricultural | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 201,000,000 | ||
Estimated fair value of mortgage loans held-for-investment | 11,400,000,000 | 11,300,000,000 | |
Commercial Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 384,000,000 | ||
Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 0 | ||
Estimated fair value of mortgage loans held-for-investment | $5,600,000,000 | $1,800,000,000 |
Investments_Leverage_Leases_Na
Investments (Leverage Leases - Narrative) (Details) (USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Leveraged Leases [Abstract] | ||
Deferred income tax liability related to leveraged leases | $1.30 | $1.40 |
Percentage of rental receivables performing | 100.00% | 100.00% |
Loans and Leases Receivable, Other Information | The payment periods for leveraged leases range from one to 15 years but in certain circumstances can be over 30 years, while the payment periods for direct financing leases range from one to 22 years. |
Investments_Cash_Equivalents_N
Investments (Cash Equivalents - Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $1,000 | $790 |
Investments_Concentrations_of_
Investments (Concentrations of Credit Risk - Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ||
Concentration Risk, Percentage | 10.00% | |
Government and agency fixed maturity securities | $0 | $0 |
Investments_Collectively_Signi
Investments (Collectively Significant Equity Method Investments - Narrative) (Details) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | |||
Carrying Value of investments accounted for under the equity method | $9.90 | ||
Unfunded commitments for investments accounted for under the equity method | 2.7 | ||
Total assets for investments accounted for under the equity method | 351 | 280.7 | |
Total liabilities for investments accounted for under the equity method | 32.1 | 23.5 | |
Net Income (loss) for investments accounted for under the equity method | $33.70 | $25 | $16.50 |
Aggregate Net income Exceeded Stated Percentage Of The Pre Tax Income (Loss) From Continuing Operations | 10.00% |
Investments_Variable_Interest_
Investments (Variable Interest Entities - Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets | $212 | $257 | |
Financial or other support to investees designated as VIEs | 0 | 0 | 0 |
Real estate joint ventures | |||
Variable Interest Entity [Line Items] | |||
Variable interest, maximum exposure to loss in consolidated securitization entities | 178 | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 1.39% | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 4.45% | ||
Consolidated Securitization Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Interest expense on long-term debt held by consolidated securitization entities | 1 | 3 | 4 |
Fixed Maturities [Member] | |||
Variable Interest Entity [Line Items] | |||
Interest expense on long-term debt held by consolidated securitization entities | 2 | 2 | 1 |
Maximum | Real estate joint ventures | |||
Variable Interest Entity [Line Items] | |||
Interest expense on long-term debt held by consolidated securitization entities | 1 | ||
Maximum | Consolidated Securitization Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Variable interest, maximum exposure to loss in consolidated securitization entities | $1 | $1 |
Investments_Net_Investment_Inc1
Investments (Net Investment Income - Narrative) (Details) (Actively Traded Securities At Estimated Fair Value And Fvo General Account Securities [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Actively Traded Securities At Estimated Fair Value And Fvo General Account Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities, Change in Unrealized Holding Gain (Loss) | ($14) | $4 | $44 |
Investments_Net_Investment_Gai
Investments (Net Investment Gains Losses - Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gains (losses) from foreign currency transactions | $1,000,000 | $2,000,000 | |
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gains (losses) from foreign currency transactions | 132,000,000 | ||
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 26,000,000 | 128,000,000 | 192,000,000 |
Debt Securities [Member] | Other Other Than Temporary Investment Losses [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $0 | $13,000,000 | $67,000,000 |
Investments_Related_Party_Inve1
Investments (Related Party Investment Transactions - Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Due from (to) Related Party | $1,300,000,000 | |||
Related party investment administrative services | 179,000,000 | 172,000,000 | 158,000,000 | |
Related party net investment income | 4,000,000 | 0 | 4,000,000 | |
Exeter Reassurance Company [Member] | Other Investments [Member] | ||||
Related Party Transaction [Line Items] | ||||
Carrying value of related party loans | 75,000,000 | |||
Related party net investment income | 5,000,000 | 5,000,000 | 5,000,000 | |
Debt Instrument, Maturity Date | 30-Dec-14 | |||
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Assets Transferred To Affiliates, Estimated Fair Value | 97,000,000 | 781,000,000 | 4,000,000 | |
Assets Transferred From Affiliates, Estimated Fair Value | 437,000,000 | 882,000,000 | 882,000,000 | 0 |
Debt Instrument, Frequency of Periodic Payment | semiannually | |||
Debt Instrument, Face Amount | 400,000,000 | 400,000,000 | ||
Affiliated Entity [Member] | Related Party Loan One [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Frequency of Periodic Payment | semiannually | |||
Debt Instrument, Maturity Date | 15-Jul-21 | |||
Debt Instrument, Face Amount | 295,000,000 | 295,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.64% | 5.64% | ||
Affiliated Entity [Member] | Related Party Loan Two [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Maturity Date | 16-Dec-21 | |||
Debt Instrument, Face Amount | 105,000,000 | 105,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.86% | 5.86% | ||
Affiliated Entity [Member] | Related Party Loan Three [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Maturity Date | 30-Jun-19 | |||
Debt Instrument, Face Amount | 500,000,000 | 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.54% | 3.54% | ||
Affiliated Entity [Member] | Related Party Loan Four [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Maturity Date | 1-Oct-19 | |||
Debt Instrument, Face Amount | 250,000,000 | 250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.57% | 3.57% | ||
Affiliated Entity [Member] | Related Party Loan Five [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Maturity Date | 30-Sep-16 | |||
Debt Instrument, Face Amount | 250,000,000 | 250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.44% | 7.44% | ||
Affiliated Entity [Member] | Related Party Loan Six [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Maturity Date | 15-Jul-21 | |||
Debt Instrument, Face Amount | 150,000,000 | 150,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.64% | 5.64% | ||
Affiliated Entity [Member] | Related Party Loan Seven [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt Instrument, Maturity Date | 16-Dec-21 | |||
Debt Instrument, Face Amount | 375,000,000 | 375,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.86% | 5.86% | ||
Affiliated Entity [Member] | Other Investments [Member] | ||||
Related Party Transaction [Line Items] | ||||
Carrying value of related party loans | 2,000,000,000 | 2,000,000,000 | 1,500,000,000 | |
Related party net investment income | 92,000,000 | 90,000,000 | 93,000,000 | |
American Life Insurance Company [Member] | Other Investments [Member] | Surplus Notes, Affiliated [Member] | ||||
Related Party Transaction [Line Items] | ||||
Carrying value of related party loans | 100,000,000 | 100,000,000 | ||
Debt Instrument, Frequency of Periodic Payment | semiannually | |||
Debt Instrument, Maturity Date | 30-Jun-20 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.17% | 3.17% | ||
Debt Securities [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Due from (to) Related Party | 1,500,000,000 | |||
Parent Company [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Assets Transferred To Affiliates, Estimated Fair Value | 751,000,000 | |||
Assets Transferred From Affiliates, Estimated Fair Value | $739,000,000 |
Derivatives_Primary_Risks_Deta
Derivatives (Primary Risks) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $206,302 | $179,075 |
Estimated Fair Value Assets | 7,104 | 4,141 |
Estimated Fair Value Liabilities | 2,732 | 2,322 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 25,497 | 21,880 |
Estimated Fair Value Assets | 3,062 | 1,983 |
Estimated Fair Value Liabilities | 733 | 802 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,341 | 8,531 |
Estimated Fair Value Assets | 2,096 | 1,529 |
Estimated Fair Value Liabilities | 119 | 190 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 5,632 | 5,940 |
Estimated Fair Value Assets | 2,031 | 1,277 |
Estimated Fair Value Liabilities | 18 | 68 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,709 | 2,591 |
Estimated Fair Value Assets | 65 | 252 |
Estimated Fair Value Liabilities | 101 | 122 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 17,156 | 13,349 |
Estimated Fair Value Assets | 966 | 454 |
Estimated Fair Value Liabilities | 614 | 612 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,191 | 2,584 |
Estimated Fair Value Assets | 447 | 77 |
Estimated Fair Value Liabilities | 0 | 109 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 70 | 205 |
Estimated Fair Value Assets | 18 | 3 |
Estimated Fair Value Liabilities | 0 | 3 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 14,895 | 10,560 |
Estimated Fair Value Assets | 501 | 374 |
Estimated Fair Value Liabilities | 614 | 500 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 180,805 | 157,195 |
Estimated Fair Value Assets | 4,042 | 2,158 |
Estimated Fair Value Liabilities | 1,999 | 1,520 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 56,394 | 59,022 |
Estimated Fair Value Assets | 2,213 | 1,320 |
Estimated Fair Value Liabilities | 1,072 | 732 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 36,141 | 38,220 |
Estimated Fair Value Assets | 319 | 323 |
Estimated Fair Value Liabilities | 108 | 234 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 41,227 | 29,809 |
Estimated Fair Value Assets | 134 | 141 |
Estimated Fair Value Liabilities | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 70 | 105 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 6,399 | 4,849 |
Estimated Fair Value Assets | 379 | 120 |
Estimated Fair Value Liabilities | 15 | 8 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 4,298 | 4,409 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,774 | 7,267 |
Estimated Fair Value Assets | 359 | 79 |
Estimated Fair Value Liabilities | 176 | 492 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,985 | 4,261 |
Estimated Fair Value Assets | 92 | 44 |
Estimated Fair Value Liabilities | 80 | 32 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 857 | 1,506 |
Estimated Fair Value Assets | 8 | 7 |
Estimated Fair Value Liabilities | 11 | 21 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,419 | 6,600 |
Estimated Fair Value Assets | 130 | 124 |
Estimated Fair Value Liabilities | 5 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 954 | 0 |
Estimated Fair Value Assets | 10 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,698 | 1,147 |
Estimated Fair Value Assets | 328 | 0 |
Estimated Fair Value Liabilities | 352 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 5,678 | 0 |
Estimated Fair Value Assets | 60 | 0 |
Estimated Fair Value Liabilities | 146 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | TRRs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 911 | 0 |
Estimated Fair Value Assets | 10 | 0 |
Estimated Fair Value Liabilities | $33 | $0 |
Derivatives_Net_Derivative_Gai
Derivatives (Net Derivative Gains Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Net Derivatives Gains (Losses) | |||
Derivatives and hedging gains (losses) | $1,207 | ($1,205) | $77 |
Embedded derivatives | -170 | 135 | 598 |
Total net derivative gains (losses) | $1,037 | ($1,070) | $675 |
Derivatives_Earned_Income_On_D
Derivatives (Earned Income On Derivatives) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | $756 | $721 | $562 |
Derivatives Designated as Hedging Instruments [Member] | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 162 | 129 | 108 |
Derivatives Designated as Hedging Instruments [Member] | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 106 | 148 | 146 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | -4 | -6 | -6 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 484 | 450 | 314 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | $8 | $0 | $0 |
Derivatives_Gains_Losses_Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | $383 | ($851) | ($39) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 876 | -1,728 | -302 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 314 | -1,753 | -83 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 554 | -69 | -252 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Credit derivatives — purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | -2 | -6 | -72 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Credit derivatives — written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | -1 | 100 | 105 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Equity market [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 11 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | -10 | -35 | -27 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Credit derivatives — purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | -14 | -15 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Credit derivatives — written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Equity market [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | -10 | -22 | -12 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | -10 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Credit derivatives — purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Credit derivatives — written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Equity market [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | ($10) | $0 | $0 |
Derivatives_Fair_Value_Hedges_
Derivatives (Fair Value Hedges) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | $383 | ($851) | ($39) |
Net Derivative Gains (Losses) Recognized for Hedged Items | -377 | 874 | 46 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 6 | 23 | 7 |
Interest rate swaps | Fixed maturity securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 4 | 34 | 2 |
Net Derivative Gains (Losses) Recognized for Hedged Items | -1 | -33 | -3 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 3 | 1 | -1 |
Interest rate swaps | Policyholder account balances [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 649 | -800 | -72 |
Net Derivative Gains (Losses) Recognized for Hedged Items | -635 | 807 | 89 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 14 | 7 | 17 |
Foreign currency swaps | Foreign-denominated fixed maturity securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 13 | 13 | -1 |
Net Derivative Gains (Losses) Recognized for Hedged Items | -11 | -12 | 1 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 2 | 1 | 0 |
Foreign currency swaps | Foreign-denominated policyholder account balances [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | -283 | -98 | 32 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 270 | 112 | -41 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | ($13) | $14 | ($9) |
Derivatives_Cash_Flow_Hedges_D
Derivatives (Cash Flow Hedges) (Details) (Cash Flow Hedges [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | $606 | ($677) | ($243) |
Interest rate swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 587 | -511 | -55 |
Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | -15 | -120 | -187 |
Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 34 | -43 | -1 |
Credit forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 0 | -3 | 0 |
Net derivative gains (losses) | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | -692 | 6 | -4 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 5 | -1 | -4 |
Net derivative gains (losses) | Interest rate swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 41 | 20 | 3 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3 | -3 | 1 |
Net derivative gains (losses) | Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | -725 | -15 | -7 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2 | 2 | -5 |
Net derivative gains (losses) | Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | -8 | 1 | 0 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Net derivative gains (losses) | Credit forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | 0 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Net Investment Gains (Losses) [Member] | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 10 | 8 | 2 |
Net Investment Gains (Losses) [Member] | Interest rate swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 9 | 8 | 4 |
Net Investment Gains (Losses) [Member] | Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | -2 | -3 | -5 |
Net Investment Gains (Losses) [Member] | Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 2 | 2 | 2 |
Net Investment Gains (Losses) [Member] | Credit forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | $1 | $1 | $1 |
Derivatives_Credit_Derivatives
Derivatives (Credit Derivatives) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $125 | $123 |
Maximum Amount of Future Payments under Credit Default Swaps | 7,419 | 6,600 |
Weighted Average Years to Maturity | 3 years 9 months | 3 years 5 months 0 days |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 15 | 26 |
Maximum Amount of Future Payments under Credit Default Swaps | 1,981 | 2,484 |
Weighted Average Years to Maturity | 2 years 7 months | 1 year 8 months 20 days |
Aaa/Aa/A | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 5 | 6 |
Maximum Amount of Future Payments under Credit Default Swaps | 415 | 395 |
Weighted Average Years to Maturity | 2 years 2 months | 2 years 6 months 20 days |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 10 | 20 |
Maximum Amount of Future Payments under Credit Default Swaps | 1,566 | 2,089 |
Weighted Average Years to Maturity | 2 years 8 months | 1 year 6 months 26 days |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 74 | 68 |
Maximum Amount of Future Payments under Credit Default Swaps | 4,689 | 3,772 |
Weighted Average Years to Maturity | 4 years 1 month | 4 years 4 months 20 days |
Baa | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 15 | 16 |
Maximum Amount of Future Payments under Credit Default Swaps | 1,002 | 874 |
Weighted Average Years to Maturity | 2 years 9 months | 3 years 2 months 12 days |
Baa | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 59 | 52 |
Maximum Amount of Future Payments under Credit Default Swaps | 3,687 | 2,898 |
Weighted Average Years to Maturity | 4 years 6 months | 4 years 8 months 4 days |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | -1 | 0 |
Maximum Amount of Future Payments under Credit Default Swaps | 160 | 5 |
Weighted Average Years to Maturity | 2 years 5 months | 3 years 9 months 12 days |
Ba | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 0 | 0 |
Maximum Amount of Future Payments under Credit Default Swaps | 60 | 5 |
Weighted Average Years to Maturity | 3 years | 3 years 9 months 12 days |
Ba | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | -1 | 0 |
Maximum Amount of Future Payments under Credit Default Swaps | 100 | 0 |
Weighted Average Years to Maturity | 2 years | 0 years |
B | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 37 | 29 |
Maximum Amount of Future Payments under Credit Default Swaps | 589 | 339 |
Weighted Average Years to Maturity | 4 years 11 months | 4 years 10 months 24 days |
B | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 0 | 0 |
Maximum Amount of Future Payments under Credit Default Swaps | 0 | 0 |
Weighted Average Years to Maturity | 0 years | 0 years |
B | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 37 | 29 |
Maximum Amount of Future Payments under Credit Default Swaps | $589 | $339 |
Weighted Average Years to Maturity | 4 years 11 months | 4 years 10 months 24 days |
Derivatives_Estimated_Fair_Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $7,247 | $4,277 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,774 | 2,349 |
Amounts offset in the consolidated balance sheet, Assets | 0 | 0 |
Amounts offset in the consolidated balance sheet, Liabilities | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 7,247 | 4,277 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 2,774 | 2,349 |
Net amount of derivative assets after application of master netting agreements and cash | 139 | 24 |
Net amount of derivative liabilities after application of master netting agreements and cash | 16 | 66 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 6,497 | 4,026 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,092 | 2,232 |
Gross estimated fair value of derivative assets | -1,742 | -1,844 |
Gross estimated fair value of derivative liabilities | -1,742 | -1,844 |
Cash collateral on derivative assets | -2,470 | -1,143 |
Cash collateral on derivative liabilities | -2 | -3 |
Securities collateral on derivative assets | -2,161 | -1,024 |
Securities collateral on derivative liabilities | -333 | -319 |
Exchange Traded [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 10 | 0 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 0 | 0 |
Gross estimated fair value of derivative assets | 0 | 0 |
Gross estimated fair value of derivative liabilities | 0 | 0 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | 0 | 0 |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 740 | 251 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 682 | 117 |
Gross estimated fair value of derivative assets | -638 | -114 |
Gross estimated fair value of derivative liabilities | -638 | -114 |
Cash collateral on derivative assets | -97 | -128 |
Cash collateral on derivative liabilities | -40 | -3 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | -3 | 0 |
Off-Balance Sheet [Member] | Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Cash collateral on derivative assets | ($138) | $0 |
Derivatives_Credit_Risk_on_Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | $338 | $358 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 0 | 0 |
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 0 | 5 |
Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 390 | 344 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 2 | 3 |
Derivatives Subject To Credit-Contingent Provisions [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 334 | 354 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 0 | 0 |
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 0 | 5 |
Derivatives Subject To Credit-Contingent Provisions [Member] | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 390 | 344 |
Derivatives Subject To Credit-Contingent Provisions [Member] | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Derivatives Not Subject To Credit-Contingent Provisions [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 4 | 4 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 0 | 0 |
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 0 | 0 |
Derivatives Not Subject To Credit-Contingent Provisions [Member] | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Derivatives Not Subject To Credit-Contingent Provisions [Member] | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | $2 | $3 |
Derivatives_Embedded_Derivativ
Derivatives (Embedded Derivatives) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | $507 | ($168) |
Ceded Guaranteed Minimum Benefit [Member] | Premiums, reinsurance and other receivables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 657 | -62 |
Direct Guaranteed Minimum Benefit [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | -548 | -868 |
Assumed Guaranteed Minimum Benefit [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 72 | 0 |
Assumed Guaranteed Minimum Benefit [Member] | Other liabilities | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 1,200 | 758 |
Funds withheld on ceded reinsurance [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 7 | 4 |
Other [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 731 | -106 |
Options embedded in debt or equity securities [Member] | Investments | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | ($150) | ($106) |
Derivatives_Changes_in_Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | ($170) | $135 | $598 |
Net derivatives gains (losses) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | ($170) | $135 | $598 |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | $7,104 | $4,141 | |
Estimated Fair Value Liabilities | 2,732 | 2,322 | |
Maximum Amount of Future Payments under Credit Default Swaps | 7,419 | 6,600 | |
Estimated Fair Value of Credit Default Swaps | 125 | 123 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives | -170 | 135 | 598 |
Derivative Instrument Detail [Abstract] | |||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | -14 | 0 | 1 |
Hedging exposure to variability in future cash flows for specific length of time | 6 years | 7 years | |
Accumulated Other Comprehensive Income Loss | 1,600 | 400 | |
Deferred net gains (losses) expected to be reclassified to earnings | 26 | ||
Potential future recoveries available to offset maximum amount of future payments under credit default swaps | 60 | 70 | |
Excess cash collateral received on derivatives | 0 | 47 | |
Excess cash collateral provided on derivatives | 31 | 3 | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ||
Over the Counter [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Excess securities collateral received on derivatives | 243 | 106 | |
Derivative, Collateral, Right to Reclaim Securities | 57 | 25 | |
Exchange Traded [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Excess securities collateral received on derivatives | 155 | 106 | |
Derivative, Collateral, Right to Reclaim Securities | 17 | 0 | |
Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives | 14 | -42 | -71 |
Ceded Guaranteed Minimum Benefit [Member] | Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives | -9 | 125 | 122 |
Hedge Funds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 15 | 10 | |
Estimated Fair Value of Credit Default Swaps | 1 | 0 | |
Derivative [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets Transferred From Affiliates, Estimated Fair Value | 740 | ||
Liabilities Transferred From Affiliates Estimated Fair Value | 754 | ||
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | 143 | 136 | |
Estimated Fair Value Liabilities | $42 | $27 |
Fair_Value_Recurring_Fair_Valu
Fair Value (Recurring Fair Value Measurements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $188,911 | $173,746 |
Available-for-sale Securities, Equity Securities | 2,065 | 1,892 |
Actively Traded Securities | 654 | 662 |
Fair Value Option And Trading Securities | 705 | 723 |
Short-term Investments | 4,474 | 5,962 |
Mortgage loans, under fair value option | 49,059 | 46,024 |
Derivative assets | 7,104 | 4,141 |
Net embedded derivatives within asset host contracts | 507 | -168 |
Separate account assets | 139,335 | 134,796 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,732 | 2,322 |
Long-term debt, at estimated fair value, relating to variable interest entities | 2,027 | 2,828 |
Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans, under fair value option | 308 | 338 |
Long-term debt | ||
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 117 | 122 |
Consolidated Securitization Entities | ||
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 13 | 28 |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 188,911 | 173,746 |
Available-for-sale Securities, Equity Securities | 2,065 | 1,892 |
Actively Traded Securities | 654 | 662 |
Fair Value Option And Trading Securities | 705 | 723 |
Short-term Investments | 4,181 | 5,786 |
Derivative assets | 7,104 | 4,141 |
Net embedded derivatives within asset host contracts | 657 | -62 |
Separate account assets | 139,335 | 134,796 |
Total assets | 343,266 | 321,360 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,732 | 2,322 |
Net embedded derivatives within liability host contracts | 731 | -106 |
Trading liabilities | 239 | 262 |
Total liabilities | 3,832 | 2,628 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5,541 | 3,261 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,214 | 1,154 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,017 | 749 |
Liabilities [Abstract] | ||
Derivative liabilities | 971 | 1,146 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 138 | 131 |
Liabilities [Abstract] | ||
Derivative liabilities | 16 | 22 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 408 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 531 | 0 |
Recurring | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 36 | 38 |
Recurring | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans, under fair value option | 308 | 338 |
Recurring | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 117 | 122 |
Recurring | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 15 | 23 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 13 | 28 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 65,357 | 64,229 |
Recurring | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 39,070 | 30,544 |
Recurring | Foreign corporate securities | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 29,818 | 28,756 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 28,163 | 24,710 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,913 | 8,376 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 8,226 | 7,824 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,520 | 5,777 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,844 | 3,530 |
Recurring | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 1,352 | 1,164 |
Recurring | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 713 | 728 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 21,625 | 15,858 |
Available-for-sale Securities, Equity Securities | 584 | 361 |
Actively Traded Securities | 22 | 2 |
Fair Value Option And Trading Securities | 22 | 2 |
Short-term Investments | 860 | 1,387 |
Derivative assets | 10 | 0 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 26,119 | 28,422 |
Total assets | 49,220 | 46,030 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Trading liabilities | 215 | 260 |
Total liabilities | 215 | 260 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 10 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 0 | 0 |
Recurring | Level 1 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans, under fair value option | 0 | 0 |
Recurring | Level 1 | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 1 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 21,625 | 15,858 |
Recurring | Level 1 | Foreign corporate securities | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 584 | 361 |
Recurring | Level 1 | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 152,986 | 143,616 |
Available-for-sale Securities, Equity Securities | 1,266 | 1,203 |
Actively Traded Securities | 627 | 648 |
Fair Value Option And Trading Securities | 652 | 695 |
Short-term Investments | 3,091 | 4,224 |
Derivative assets | 6,938 | 4,101 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 111,601 | 105,165 |
Total assets | 276,534 | 259,004 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,582 | 2,318 |
Net embedded derivatives within liability host contracts | 7 | 4 |
Trading liabilities | 24 | 2 |
Total liabilities | 2,695 | 2,403 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 5,524 | 3,258 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,214 | 1,150 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,010 | 735 |
Liabilities [Abstract] | ||
Derivative liabilities | 971 | 1,146 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 125 | 108 |
Liabilities [Abstract] | ||
Derivative liabilities | 15 | 22 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 279 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 382 | 0 |
Recurring | Level 2 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 22 | 24 |
Recurring | Level 2 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans, under fair value option | 0 | 0 |
Recurring | Level 2 | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 82 | 79 |
Recurring | Level 2 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 3 | 23 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 60,420 | 58,960 |
Recurring | Level 2 | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,445 | 14,624 |
Recurring | Level 2 | Foreign corporate securities | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 26,227 | 25,558 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 24,534 | 22,197 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,464 | 7,946 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,734 | 5,298 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,520 | 5,777 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,642 | 3,256 |
Recurring | Level 2 | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 716 | 753 |
Recurring | Level 2 | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 550 | 450 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 14,300 | 14,272 |
Available-for-sale Securities, Equity Securities | 215 | 328 |
Actively Traded Securities | 5 | 12 |
Fair Value Option And Trading Securities | 31 | 26 |
Short-term Investments | 230 | 175 |
Derivative assets | 156 | 40 |
Net embedded derivatives within asset host contracts | 657 | -62 |
Separate account assets | 1,615 | 1,209 |
Total assets | 17,512 | 16,326 |
Liabilities [Abstract] | ||
Derivative liabilities | 150 | 4 |
Net embedded derivatives within liability host contracts | 724 | -110 |
Trading liabilities | 0 | 0 |
Total liabilities | 922 | -35 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 17 | 3 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 4 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 7 | 14 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 13 | 23 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 119 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 149 | 0 |
Recurring | Level 3 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 14 | 14 |
Recurring | Level 3 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans, under fair value option | 308 | 338 |
Recurring | Level 3 | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 43 |
Recurring | Level 3 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 12 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 13 | 28 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,937 | 5,269 |
Recurring | Level 3 | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 62 |
Recurring | Level 3 | Foreign corporate securities | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,591 | 3,198 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,629 | 2,513 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 449 | 430 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,492 | 2,526 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 202 | 274 |
Recurring | Level 3 | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 52 | 50 |
Recurring | Level 3 | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | $163 | $278 |
Fair_Value_Quantitative_Inform
Fair Value (Quantitative Information) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Interest rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.90% | 4.01% |
Interest rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.90% | 4.50% |
Foreign currency exchange rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 0.00% | 5.80% |
Correlation | 40.00% | 38.00% |
Foreign currency exchange rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 0.00% | 7.67% |
Correlation | 55.00% | 47.00% |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.98% | 0.98% |
Credit contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 1.00% | 1.01% |
Equity market contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 70.00% | 0.00% |
Volatility | 15.00% | 0.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 70.00% | 0.00% |
Volatility | 27.00% | 0.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate, Low End | 0.50% | 0.50% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate, Low End | 3.00% | 3.00% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate, Low End | 3.00% | 3.00% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate, Low End | 0.00% | 0.00% |
Mortality Rate, High End | 0.10% | 0.10% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate, Low End | 0.04% | 0.04% |
Mortality Rate, High End | 0.65% | 0.65% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Ages 61 – 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate, Low End | 0.26% | 0.26% |
Mortality Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 20.00% | 20.00% |
Withdrawal rates | 0.07% | 0.07% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.03% | 0.03% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 50.00% | 50.00% |
Withdrawal rates | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 0.46% | 0.44% |
U.S. corporate and foreign corporate | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | -0.40% | -0.10% |
Matrix Pricing - Offered quotes | 64 | 4 |
Offered quotes | 98 | 33 |
Quoted prices | 0 | 0 |
U.S. corporate and foreign corporate | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | 2.40% | 2.40% |
Matrix Pricing - Offered quotes | 130 | 104 |
Offered quotes | 126 | 140 |
Quoted prices | 590 | 277 |
U.S. corporate and foreign corporate | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | 0.39% | 0.38% |
Matrix Pricing - Offered quotes | 96 | 100 |
Offered quotes | 101 | 98 |
Quoted prices | 126 | 122 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 1 | 69 |
Quoted prices | 22 | 22 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 118 | 101 |
Quoted prices | 120 | 100 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 93 | 93 |
Quoted prices | 97 | 98 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 56 | 56 |
Quoted prices | 15 | 0 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 106 | 106 |
Quoted prices | 110 | 106 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 98 | 98 |
Quoted prices | 100 | 101 |
Fair_Value_Unobservable_Input_
Fair Value (Unobservable Input Reconciliation) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Securitization Entities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | $0 | $0 | $0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | -1,000,000 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 13,000,000 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | 12,000,000 | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | -28,000,000 | -44,000,000 | -116,000,000 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 16,000,000 | 18,000,000 | 79,000,000 |
Transfers Into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | -13,000,000 | -28,000,000 | -44,000,000 |
Consolidated Securitization Entities | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Consolidated Securitization Entities | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -1,000,000 | -2,000,000 | -7,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1,000,000 | -2,000,000 | -7,000,000 |
Consolidated Securitization Entities | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Interest rate contracts | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | -1,000,000 | 58,000,000 | 67,000,000 |
Other Comprehensive Income (Loss) | 40,000,000 | -44,000,000 | -1,000,000 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | -22,000,000 | -12,000,000 | -25,000,000 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | 17,000,000 | -1,000,000 | 58,000,000 |
Interest rate contracts | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Interest rate contracts | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Interest rate contracts | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | -3,000,000 | 17,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Foreign currency exchange rate contracts | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | 14,000,000 | 37,000,000 | 56,000,000 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | -1,000,000 | 1,000,000 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | 7,000,000 | 14,000,000 | 37,000,000 |
Foreign currency exchange rate contracts | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Foreign currency exchange rate contracts | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Foreign currency exchange rate contracts | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -6,000,000 | -24,000,000 | -19,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | -6,000,000 | -24,000,000 | -19,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -6,000,000 | -24,000,000 | -19,000,000 |
Credit contracts | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | 23,000,000 | 33,000,000 | 1,000,000 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | -4,000,000 | -1,000,000 | -3,000,000 |
Settlements | 0 | -1,000,000 | -3,000,000 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | 12,000,000 | 23,000,000 | 33,000,000 |
Credit contracts | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Credit contracts | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Credit contracts | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | -5,000,000 | 36,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | -7,000,000 | -8,000,000 | 38,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | -5,000,000 | 36,000,000 |
Equity market contracts | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 111,000,000 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | -155,000,000 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | -30,000,000 | 0 | 0 |
Equity market contracts | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Equity market contracts | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Equity market contracts | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 14,000,000 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 14,000,000 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 14,000,000 | 0 | 0 |
Net Embedded Derivatives | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | 48,000,000 | -109,000,000 | -790,000,000 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 29,000,000 | 55,000,000 | 52,000,000 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | -67,000,000 | 48,000,000 | -109,000,000 |
Net Embedded Derivatives | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Net Embedded Derivatives | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Net Embedded Derivatives | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -115,000,000 | 115,000,000 | 636,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net Income (Loss) | -144,000,000 | 102,000,000 | 629,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -115,000,000 | 115,000,000 | 636,000,000 |
FVO general account securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 14,000,000 | 26,000,000 | 14,000,000 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | -23,000,000 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | 14,000,000 | 14,000,000 | 26,000,000 |
FVO general account securities | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 5,000,000 | 12,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 5,000,000 | 12,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 5,000,000 | 12,000,000 |
FVO general account securities | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 6,000,000 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
FVO general account securities | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Residential mortgage loans — FVO | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 338,000,000 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 124,000,000 | 339,000,000 | 0 |
Sales | -120,000,000 | -2,000,000 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | -54,000,000 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Balance at December 31, | 308,000,000 | 338,000,000 | 0 |
Residential mortgage loans — FVO | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 20,000,000 | 1,000,000 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 20,000,000 | 1,000,000 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 20,000,000 | 1,000,000 | 0 |
Residential mortgage loans — FVO | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Residential mortgage loans — FVO | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Long-term debt | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | -43,000,000 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | -30,000,000 | -43,000,000 | 0 |
Settlements | 20,000,000 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 18,000,000 | 0 | 0 |
Balance at December 31, | -35,000,000 | -43,000,000 | 0 |
Long-term debt | Net Investment Income | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Long-term debt | Net Investment Gains (Losses) | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Long-term debt | Net Derivative Gains (Losses) | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
U.S. corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 5,269,000,000 | 5,460,000,000 | 4,919,000,000 |
Other Comprehensive Income (Loss) | 274,000,000 | -36,000,000 | 173,000,000 |
Purchases | 1,027,000,000 | 1,188,000,000 | 1,282,000,000 |
Sales | -925,000,000 | -862,000,000 | -848,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 87,000,000 | 717,000,000 | 559,000,000 |
Transfers out of Level 3 | -792,000,000 | -1,163,000,000 | -630,000,000 |
Balance at December 31, | 4,937,000,000 | 5,269,000,000 | 5,460,000,000 |
U.S. corporate | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 3,000,000 | 2,000,000 | 7,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 1,000,000 | 4,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 1,000,000 | 4,000,000 |
U.S. corporate | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -6,000,000 | -37,000,000 | -2,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -6,000,000 | -40,000,000 | -3,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -6,000,000 | -40,000,000 | -3,000,000 |
U.S. corporate | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
U.S. Treasury and agency | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 62,000,000 | 71,000,000 | 25,000,000 |
Other Comprehensive Income (Loss) | 0 | -3,000,000 | 0 |
Purchases | 0 | 0 | 47,000,000 |
Sales | 0 | -6,000,000 | -1,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | -62,000,000 | 0 | 0 |
Balance at December 31, | 0 | 62,000,000 | 71,000,000 |
U.S. Treasury and agency | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
U.S. Treasury and agency | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
U.S. Treasury and agency | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Foreign corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 3,198,000,000 | 3,054,000,000 | 2,258,000,000 |
Other Comprehensive Income (Loss) | -56,000,000 | 3,000,000 | 142,000,000 |
Purchases | 736,000,000 | 842,000,000 | 1,213,000,000 |
Sales | -229,000,000 | -646,000,000 | -489,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 119,000,000 | 250,000,000 | 99,000,000 |
Transfers out of Level 3 | -175,000,000 | -284,000,000 | -123,000,000 |
Balance at December 31, | 3,591,000,000 | 3,198,000,000 | 3,054,000,000 |
Foreign corporate | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 2,000,000 | 1,000,000 | 6,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 2,000,000 | 0 | 5,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 2,000,000 | 0 | 5,000,000 |
Foreign corporate | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -4,000,000 | -22,000,000 | -52,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | -13,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | -13,000,000 |
Foreign corporate | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
RMBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 2,513,000,000 | 1,702,000,000 | 691,000,000 |
Other Comprehensive Income (Loss) | 67,000,000 | 140,000,000 | 220,000,000 |
Purchases | 1,528,000,000 | 1,001,000,000 | 892,000,000 |
Sales | -542,000,000 | -328,000,000 | -242,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 45,000,000 | 41,000,000 | 131,000,000 |
Transfers out of Level 3 | -29,000,000 | -71,000,000 | -12,000,000 |
Balance at December 31, | 3,629,000,000 | 2,513,000,000 | 1,702,000,000 |
RMBS | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 42,000,000 | 30,000,000 | 27,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 43,000,000 | 35,000,000 | 27,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 43,000,000 | 35,000,000 | 27,000,000 |
RMBS | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 5,000,000 | -2,000,000 | -5,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1,000,000 | -3,000,000 | -2,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1,000,000 | -3,000,000 | -2,000,000 |
RMBS | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
CMBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 430,000,000 | 402,000,000 | 219,000,000 |
Other Comprehensive Income (Loss) | 1,000,000 | 2,000,000 | -3,000,000 |
Purchases | 183,000,000 | 221,000,000 | 268,000,000 |
Sales | -39,000,000 | -66,000,000 | -167,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 5,000,000 | 74,000,000 | 104,000,000 |
Transfers out of Level 3 | -130,000,000 | -202,000,000 | -12,000,000 |
Balance at December 31, | 449,000,000 | 430,000,000 | 402,000,000 |
CMBS | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -1,000,000 | -1,000,000 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1,000,000 | -1,000,000 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1,000,000 | -1,000,000 | 0 |
CMBS | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | -7,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
CMBS | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
ABS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 2,526,000,000 | 1,923,000,000 | 1,146,000,000 |
Other Comprehensive Income (Loss) | 35,000,000 | -27,000,000 | -3,000,000 |
Purchases | 1,029,000,000 | 1,133,000,000 | 953,000,000 |
Sales | -725,000,000 | -429,000,000 | -157,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 34,000,000 | 1,000,000 | 4,000,000 |
Transfers out of Level 3 | -1,373,000,000 | -79,000,000 | -20,000,000 |
Balance at December 31, | 1,492,000,000 | 2,526,000,000 | 1,923,000,000 |
ABS | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 6,000,000 | 0 | 1,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 1,000,000 | 0 | 1,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 1,000,000 | 0 | 1,000,000 |
ABS | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -40,000,000 | 4,000,000 | -1,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
ABS | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Foreign government | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 274,000,000 | 282,000,000 | 291,000,000 |
Other Comprehensive Income (Loss) | 22,000,000 | -45,000,000 | 19,000,000 |
Purchases | 0 | 69,000,000 | 2,000,000 |
Sales | -115,000,000 | -37,000,000 | -55,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 70,000,000 | 1,000,000 | 25,000,000 |
Transfers out of Level 3 | 0 | -2,000,000 | 0 |
Balance at December 31, | 202,000,000 | 274,000,000 | 282,000,000 |
Foreign government | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 4,000,000 | 5,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 1,000,000 | 4,000,000 | 5,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 1,000,000 | 4,000,000 | 5,000,000 |
Foreign government | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -49,000,000 | 2,000,000 | -5,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Foreign government | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Common Stock | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 50,000,000 | 60,000,000 | 104,000,000 |
Other Comprehensive Income (Loss) | 0 | -5,000,000 | -7,000,000 |
Purchases | 19,000,000 | 5,000,000 | 10,000,000 |
Sales | -21,000,000 | -31,000,000 | -24,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 1,000,000 | 1,000,000 |
Transfers out of Level 3 | 0 | 0 | -31,000,000 |
Balance at December 31, | 52,000,000 | 50,000,000 | 60,000,000 |
Common Stock | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Common Stock | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 4,000,000 | 20,000,000 | 7,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -2,000,000 | 0 | -4,000,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -2,000,000 | 0 | -4,000,000 |
Common Stock | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Non-redeemable preferred stock | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 278,000,000 | 281,000,000 | 293,000,000 |
Other Comprehensive Income (Loss) | 2,000,000 | 84,000,000 | 16,000,000 |
Purchases | 0 | 17,000,000 | 5,000,000 |
Sales | -38,000,000 | -74,000,000 | -32,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | -82,000,000 | 0 | 0 |
Balance at December 31, | 163,000,000 | 278,000,000 | 281,000,000 |
Non-redeemable preferred stock | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Non-redeemable preferred stock | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 3,000,000 | -30,000,000 | -1,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -3,000,000 | -17,000,000 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -3,000,000 | -17,000,000 | 0 |
Non-redeemable preferred stock | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Actively traded securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 12,000,000 | 6,000,000 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 5,000,000 | 9,000,000 | 6,000,000 |
Sales | -7,000,000 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | -5,000,000 | -3,000,000 | 0 |
Balance at December 31, | 5,000,000 | 12,000,000 | 6,000,000 |
Actively traded securities | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Actively traded securities | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Actively traded securities | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Short-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 175,000,000 | 252,000,000 | 134,000,000 |
Other Comprehensive Income (Loss) | 0 | 19,000,000 | -19,000,000 |
Purchases | 230,000,000 | 174,000,000 | 246,000,000 |
Sales | -156,000,000 | -247,000,000 | -106,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 5,000,000 |
Transfers out of Level 3 | -18,000,000 | 0 | -8,000,000 |
Balance at December 31, | 230,000,000 | 175,000,000 | 252,000,000 |
Short-term Investments | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 1,000,000 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Short-term Investments | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | -2,000,000 | -23,000,000 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 1,000,000 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 1,000,000 | 0 |
Short-term Investments | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Separate account assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 1,209,000,000 | 940,000,000 | 1,082,000,000 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Purchases | 527,000,000 | 185,000,000 | 171,000,000 |
Sales | -376,000,000 | -204,000,000 | -379,000,000 |
Issuances | 81,000,000 | 72,000,000 | 2,000,000 |
Settlements | -28,000,000 | 0 | -1,000,000 |
Transfers into Level 3 | 144,000,000 | 236,000,000 | 24,000,000 |
Transfers out of Level 3 | -44,000,000 | -62,000,000 | -43,000,000 |
Balance at December 31, | 1,615,000,000 | 1,209,000,000 | 940,000,000 |
Separate account assets | Net Investment Income | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Separate account assets | Net Investment Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 102,000,000 | 42,000,000 | 84,000,000 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Separate account assets | Net Derivative Gains (Losses) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Income (Loss) | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | $0 | $0 | $0 |
Fair_Value_Fair_Value_Option_f
Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $49,059 | $46,024 |
Residential mortgage loans — FVO | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 436 | 508 |
Difference between estimated fair value and unpaid principal balance | -128 | -170 |
Carrying value at estimated fair value | 308 | 338 |
Loans in non-accrual status | $125 | $0 |
Fair_Value_Fair_Value_Option_f1
Fair Value (Fair Value Option for Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $2,027 | $2,828 |
Long-term debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Contractual principal balance | 115 | 123 |
Difference between estimated fair value and contractual principal balance | 2 | -1 |
Carrying value at estimated fair value | 117 | 122 |
Consolidated Securitization Entities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Contractual principal balance | 26 | 42 |
Difference between estimated fair value and contractual principal balance | -13 | -14 |
Carrying value at estimated fair value | $13 | $28 |
Fair_Value_Nonrecurring_Fair_V
Fair Value (Nonrecurring Fair Value Measurements) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Level 3 | Goodwill [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value After Measurement | $0 | $0 | $0 |
Level 3 | Mortgage loans, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value After Measurement | 94 | 175 | 361 |
Level 3 | Other limited partnership interests [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value After Measurement | 109 | 71 | 48 |
Nonrecurring [Member] | Goodwill [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (Losses) | 0 | 0 | -10 |
Nonrecurring [Member] | Mortgage loans, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (Losses) | 2 | 24 | -16 |
Nonrecurring [Member] | Other limited partnership interests [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (Losses) | ($70) | ($40) | ($30) |
Fair_Value_Financial_Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Policy loans | $8,491 | $8,421 |
Liabilities | ||
Separate account liabilities | 139,335 | 134,796 |
Estimated Fair Value [Member] | ||
Assets | ||
Mortgage loans | 50,992 | 47,369 |
Policy loans | 10,410 | 9,553 |
Real estate joint ventures | 54 | 70 |
Other limited partnership interests | 819 | 1,013 |
Other invested assets | 2,490 | 2,015 |
Premiums, reinsurance and other receivables | 14,701 | 14,921 |
Liabilities | ||
PABs | 75,481 | 72,236 |
Long-term debt | 2,297 | 2,956 |
Other liabilities | 20,742 | 20,097 |
Separate account liabilities | 60,840 | 57,935 |
Estimated Fair Value [Member] | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Other invested assets | 0 | 87 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
PABs | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value [Member] | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 796 | 786 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Other invested assets | 2,270 | 1,752 |
Premiums, reinsurance and other receivables | 94 | 15 |
Liabilities | ||
PABs | 0 | 0 |
Long-term debt | 2,029 | 2,956 |
Other liabilities | 609 | 310 |
Separate account liabilities | 60,840 | 57,935 |
Estimated Fair Value [Member] | Level 3 | ||
Assets | ||
Mortgage loans | 50,992 | 47,369 |
Policy loans | 9,614 | 8,767 |
Real estate joint ventures | 54 | 70 |
Other limited partnership interests | 819 | 1,013 |
Other invested assets | 220 | 176 |
Premiums, reinsurance and other receivables | 14,607 | 14,906 |
Liabilities | ||
PABs | 75,481 | 72,236 |
Long-term debt | 268 | 0 |
Other liabilities | 20,133 | 19,787 |
Separate account liabilities | 0 | 0 |
Carrying Value [Member] | ||
Assets | ||
Mortgage loans | 48,751 | 45,686 |
Policy loans | 8,491 | 8,421 |
Real estate joint ventures | 30 | 47 |
Other limited partnership interests | 635 | 865 |
Other invested assets | 2,385 | 2,017 |
Premiums, reinsurance and other receivables | 13,845 | 14,210 |
Liabilities | ||
PABs | 73,225 | 70,205 |
Long-term debt | 1,897 | 2,655 |
Other liabilities | 20,139 | 19,601 |
Separate account liabilities | $60,840 | $57,935 |
Fair_Value_Recurring_Fair_Valu1
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Equity Securities | $2,065 | $1,892 |
Net Embedded Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Equity Securities | ($150) | ($106) |
Fair_Value_Nonrecurring_Fair_V1
Fair Value (Nonrecurring Fair Value Measurements) (Narrative) (Details) (Private Equity And Debt Funds [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Liquidation period | 2 years |
Maximum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Liquidation period | 10 years |
Goodwill_Goodwill_Details
Goodwill (Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill Rollforward and by Segment | |||
Goodwill | $111 | $111 | $111 |
Accumulated impairment | 0 | -10 | -10 |
Goodwill total | 111 | 101 | 101 |
Impairments | -10 | ||
Goodwill | 111 | 111 | 111 |
Accumulated impairment | -10 | -10 | -10 |
Goodwill total | 101 | 101 | 101 |
Retail | |||
Goodwill Rollforward and by Segment | |||
Goodwill | 37 | 37 | 37 |
Accumulated impairment | 0 | -10 | -10 |
Goodwill total | 37 | 27 | 27 |
Impairments | -10 | ||
Goodwill | 37 | 37 | 37 |
Accumulated impairment | -10 | -10 | -10 |
Goodwill total | 27 | 27 | 27 |
Group, Voluntary & Worksite Benefits | |||
Goodwill Rollforward and by Segment | |||
Goodwill | 68 | 68 | 68 |
Accumulated impairment | 0 | 0 | 0 |
Goodwill total | 68 | 68 | 68 |
Impairments | 0 | ||
Goodwill | 68 | 68 | 68 |
Accumulated impairment | 0 | 0 | 0 |
Goodwill total | 68 | 68 | 68 |
Corporate Benefit Funding | |||
Goodwill Rollforward and by Segment | |||
Goodwill | 2 | 2 | 2 |
Accumulated impairment | 0 | 0 | 0 |
Goodwill total | 2 | 2 | 2 |
Impairments | 0 | ||
Goodwill | 2 | 2 | 2 |
Accumulated impairment | 0 | 0 | 0 |
Goodwill total | 2 | 2 | 2 |
Corporate & Other | |||
Goodwill Rollforward and by Segment | |||
Goodwill | 4 | 4 | 4 |
Accumulated impairment | 0 | 0 | 0 |
Goodwill total | 4 | 4 | 4 |
Impairments | 0 | ||
Goodwill | 4 | 4 | 4 |
Accumulated impairment | 0 | 0 | 0 |
Goodwill total | $4 | $4 | $4 |
Goodwill_Narrative_Details
Goodwill (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Goodwill [Line Items] | |
Impairments | ($10) |
Retail | |
Goodwill [Line Items] | |
Impairments | ($10) |
Longterm_and_Shortterm_Debt_Lo
Long-term and Short-term Debt (Long-term and Short-term Outstanding) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $0 | $23 |
Long-term debt | 2,014 | 2,800 |
Short-term debt | 100 | 175 |
Total | 2,114 | 2,975 |
Surplus Notes, Affiliated [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Minimum | 3.00% | |
Interest Rate Range Maximum | 7.38% | |
Weighted Average Interest Rate | 6.49% | |
Debt Instrument, Maturity Date Range, Start | 8-Nov-15 | |
Debt Instrument, Maturity Date Range, End | 15-Dec-37 | |
Long-term Debt | 883 | 1,100 |
Surplus notes | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Minimum | 7.63% | |
Interest Rate Range Maximum | 7.88% | |
Weighted Average Interest Rate | 7.83% | |
Debt Instrument, Maturity Date Range, Start | 1-Nov-15 | |
Debt Instrument, Maturity Date Range, End | 1-Nov-25 | |
Long-term Debt | 701 | 701 |
Mortgage Loans, Affiliated [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Minimum | 2.11% | |
Interest Rate Range Maximum | 7.26% | |
Weighted Average Interest Rate | 5.21% | |
Debt Instrument, Maturity Date Range, Start | 1-Jan-15 | |
Debt Instrument, Maturity Date Range, End | 1-Jan-20 | |
Long-term Debt | 242 | 364 |
Senior Notes Affiliated [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Minimum | 0.92% | |
Interest Rate Range Maximum | 2.75% | |
Weighted Average Interest Rate | 1.97% | |
Debt Instrument, Maturity Date Range, Start | 27-Jan-21 | |
Debt Instrument, Maturity Date Range, End | 1-Jun-22 | |
Long-term Debt | 78 | 79 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Minimum | 1.34% | |
Interest Rate Range Maximum | 8.00% | |
Weighted Average Interest Rate | 3.34% | |
Debt Instrument, Maturity Date Range, Start | 12-Sep-15 | |
Debt Instrument, Maturity Date Range, End | 1-Apr-27 | |
Long-term Debt | $110 | $533 |
Longterm_and_Shortterm_Debt_Sh
Long-term and Short-term Debt (Short-term with Maturities of Year or Less) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Commercial paper | $100 | $175 |
Short-term Debt, average daily balance | 109 | 103 |
Short-term Debt Average Days Outstanding | 69 days | 55 days |
Short-term Debt [Line Items] | ||
Short-term debt | $100 | $175 |
Longterm_and_Shortterm_Debt_Cr
Long-term and Short-term Debt (Credit Facilities) (Details) (General Credit Facility [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
General Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Borrowers | MetLife, Inc. and MetLife Funding, Inc. |
Expiration | 30-May-19 |
Line of Credit Facility, Maximum Borrowing Capacity | $4,000 |
Letter of Credit Issuances | 684 |
Collateral financing arrangements | 0 |
Unused Commitments | $3,316 |
Longterm_and_Shortterm_Debt_Co
Long-term and Short-term Debt (Committed Facilities) (Details) (Committed Credit Facility One [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Committed Credit Facility One [Member] | |
Debt Instrument [Line Items] | |
Borrowers | MetLife, Inc. & Missouri Reinsurance, Inc. |
Expiration | 30-Jun-16 |
Line of Credit Facility, Maximum Borrowing Capacity | $490 |
Letter of Credit Issuances | 490 |
Collateral financing arrangements | 0 |
Unused Commitments | $0 |
Longterm_and_Shortterm_Debt_Na
Long-term and Short-term Debt (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Long Term Debt Aggregate Maturities, Year One | $521,000,000 | |||
Long Term Debt Aggregate Maturities, Year Two | 3,000,000 | |||
Long Term Debt Aggregate Maturities, Year Three | 3,000,000 | |||
Long Term Debt Aggregate Maturities, Year Four | 7,000,000 | |||
Long Term Debt Aggregate Maturities, Year Five | 33,000,000 | |||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,400,000,000 | |||
Repayments of Long-term Debt | 390,000,000 | 27,000,000 | 81,000,000 | |
Short-term Debt, Weighted Average Interest Rate | 0.10% | 0.12% | 0.17% | |
Interest Expense [Abstract] | ||||
Total interest expense | 150,000,000 | 150,000,000 | 148,000,000 | |
General Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Affiliated Borrower | MetLife, Inc. and MetLife Funding, Inc. | |||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000,000,000 | |||
Collateral financing arrangements | 0 | |||
Unused Commitments | 3,316,000,000 | |||
Line of Credit Facility, Expiration Date | 30-May-19 | |||
Fees associated with credit facilities | 3,000,000 | |||
Letters of Credit Outstanding, Amount | 684,000,000 | |||
General Credit Facility One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | |||
General Credit Facility Two [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000,000,000 | |||
Committed Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 490,000,000 | |||
Fees associated with credit facilities | 4,000,000 | 3,000,000 | 3,000,000 | |
Committed Credit Facility One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Affiliated Borrower | MetLife, Inc. & Missouri Reinsurance, Inc. | |||
Line of Credit Facility, Maximum Borrowing Capacity | 490,000,000 | |||
Collateral financing arrangements | 0 | |||
Unused Commitments | 0 | |||
Line of Credit Facility, Expiration Date | 30-Jun-16 | |||
Letters of Credit Outstanding, Amount | 490,000,000 | |||
Scenario, Forecast [Member] | Committed Credit Facility One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||
General Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Fees associated with credit facilities | 4,000,000 | 3,000,000 | 3,000,000 | |
Missouri Reinsurance [Member] | Committed Credit Facility One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of Credit Outstanding, Amount | 490,000,000 | |||
Affiliated Entity [Member] | ||||
Interest Expense [Abstract] | ||||
Total interest expense | 88,000,000 | 91,000,000 | 89,000,000 | |
Surplus Note Affiliated September 2014 [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | 217,000,000 | |||
Mortgage Loans Affiliated January 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | 60,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.67% | |||
Debt Instrument, Maturity Date | 1-Jan-17 | |||
Mortgage Loans Affiliated January 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | 60,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.01% | |||
Debt Instrument, Maturity Date | 1-Jan-20 | |||
Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 373,000,000 | |||
Long-term debt, at estimated fair value, relating to variable interest entities | 110,000,000 | 533,000,000 | ||
Senior Notes Affiliated [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 80,000,000 | |||
Long-term debt, at estimated fair value, relating to variable interest entities | 78,000,000 | 79,000,000 | ||
Consolidated Securitization Entities [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, at estimated fair value, relating to variable interest entities | $13,000,000 | $28,000,000 |
Equity_Statutory_Long_Term_Car
Equity (Statutory Long Term Care Reserves) (Details) (New York Licensing Inquiry [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
Statutory Accounting Practices [Line Items] | ||||
2013 Strengthening | $300 | |||
2014 Strengthening | 100 | 200 | ||
2015 Strengthening | 100 | 100 | ||
2016 Strengthening | 100 | |||
Combined Strengthening | 300 | 300 | ||
Scenario, Forecast [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined Strengthening | $100 | $200 |
Equity_Statutory_Net_Income_Lo
Equity (Statutory Net Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Parent Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $1,487 | $369 | $1,320 |
Statutory capital and surplus | 12,008 | 12,428 | |
New England Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 303 | 103 | 79 |
Statutory capital and surplus | 675 | 571 | |
General American Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 129 | 60 | 19 |
Statutory capital and surplus | $867 | $818 |
Equity_Dividend_Restrictions_D
Equity (Dividend Restrictions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 |
Statutory Accounting Practices [Line Items] | |||
Paid | $1,428 | ||
Total dividends paid | 821 | ||
Scenario, Forecast [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Permitted w/o Approval | 1,200 | ||
New England Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Paid | 77 | ||
Total dividends paid | 227 | ||
New England Life Insurance Company [Member] | Scenario, Forecast [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Permitted w/o Approval | 199 | ||
General American Life Insurance Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Paid | 0 | 0 | |
General American Life Insurance Company [Member] | Scenario, Forecast [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Permitted w/o Approval | $88 |
Equity_Components_of_Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | $2,158 | $4,008 | $3,054 |
OCI before reclassifications | 3,476 | -2,580 | 1,515 |
Deferred income tax benefit (expense) | -1,205 | 883 | -528 |
OCI before reclassifications, net of income tax | 4,429 | 2,311 | 4,041 |
Amounts reclassified from AOCI | 932 | -235 | -50 |
Deferred income tax benefit (expense) | -327 | 82 | 17 |
Amounts reclassified from AOCI, net of income tax | 605 | -153 | -33 |
Balance end of period | 5,034 | 2,158 | 4,008 |
Unrealized Investment Gains (Losses), Net of Related Offsets [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 3,468 | 5,654 | 4,028 |
OCI before reclassifications | 4,095 | -3,321 | 2,406 |
Deferred income tax benefit (expense) | -1,409 | 1,145 | -843 |
OCI before reclassifications, net of income tax | 6,154 | 3,478 | 5,591 |
Amounts reclassified from AOCI | 70 | -16 | 96 |
Deferred income tax benefit (expense) | -24 | 6 | -33 |
Amounts reclassified from AOCI, net of income tax | 46 | -10 | 63 |
Balance end of period | 6,200 | 3,468 | 5,654 |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 236 | 685 | 840 |
OCI before reclassifications | 606 | -677 | -243 |
Deferred income tax benefit (expense) | -212 | 237 | 87 |
OCI before reclassifications, net of income tax | 630 | 245 | 684 |
Amounts reclassified from AOCI | 682 | -14 | 2 |
Deferred income tax benefit (expense) | -239 | 5 | -1 |
Amounts reclassified from AOCI, net of income tax | 443 | -9 | 1 |
Balance end of period | 1,073 | 236 | 685 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 31 | 18 | 37 |
OCI before reclassifications | -44 | 22 | -30 |
Deferred income tax benefit (expense) | 10 | -9 | 11 |
OCI before reclassifications, net of income tax | -3 | 31 | 18 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 |
Balance end of period | -3 | 31 | 18 |
Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | -1,577 | -2,349 | -1,851 |
OCI before reclassifications | -1,181 | 1,396 | -618 |
Deferred income tax benefit (expense) | 406 | -490 | 217 |
OCI before reclassifications, net of income tax | -2,352 | -1,443 | -2,252 |
Amounts reclassified from AOCI | 180 | -205 | -148 |
Deferred income tax benefit (expense) | -64 | 71 | 51 |
Amounts reclassified from AOCI, net of income tax | 116 | -134 | -97 |
Balance end of period | ($2,236) | ($1,577) | ($2,349) |
Equity_Reclassifications_Out_o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment gains (losses) | $143 | $48 | ($330) | ||||||||
Net derivative gains (losses) | 1,037 | -1,070 | 675 | ||||||||
Net investment income | 11,893 | 11,785 | 11,852 | ||||||||
Income (loss) from continuing operations before provision for income tax | 5,391 | 2,822 | 3,698 | ||||||||
Provision for income tax expense (benefit) | -1,532 | -681 | -1,055 | ||||||||
Net income (loss) | 979 | 1,303 | 749 | 825 | 581 | 242 | 646 | 673 | 3,856 | 2,142 | 2,683 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income (loss) | -605 | 153 | 33 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Investment Gains (Losses), Net of Related Offsets [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment gains (losses) | -103 | -9 | -136 | ||||||||
Net derivative gains (losses) | -7 | -28 | -16 | ||||||||
Net investment income | 40 | 53 | 56 | ||||||||
Income (loss) from continuing operations before provision for income tax | -70 | 16 | -96 | ||||||||
Provision for income tax expense (benefit) | 24 | -6 | 33 | ||||||||
Net income (loss) | -46 | 10 | -63 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) from continuing operations before provision for income tax | -682 | 14 | -2 | ||||||||
Provision for income tax expense (benefit) | 239 | -5 | 1 | ||||||||
Net income (loss) | -443 | 9 | -1 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | Interest rate forwards | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net derivative gains (losses) | -8 | 1 | 0 | ||||||||
Net investment income | 2 | 2 | 2 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net derivative gains (losses) | -725 | -15 | -7 | ||||||||
Net investment income | -2 | -3 | -5 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | Credit forwards | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment income | 1 | 1 | 1 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | Interest rate swaps | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net derivative gains (losses) | 41 | 20 | 3 | ||||||||
Net investment income | 9 | 8 | 4 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plans Adjustment | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of net actuarial gains (losses) | -180 | 274 | 246 | ||||||||
Amortization of prior service (costs) credit | 0 | -69 | -98 | ||||||||
Income (loss) from continuing operations before provision for income tax | -180 | 205 | 148 | ||||||||
Provision for income tax expense (benefit) | 64 | -71 | -51 | ||||||||
Net income (loss) | ($116) | $134 | $97 |
Equity_StockBased_Compensation
Equity (Stock-Based Compensation Plans - Narrative) (Details) (2005 Stock and Incentive Compensation Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2005 Stock and Incentive Compensation Plan [Member] | |||
Equity - Stock-based Compensation Plans [Line Items] | |||
Allocated Share-based Compensation Expense | $100 | $122 | $127 |
Equity_Statutory_Equity_Income
Equity (Statutory Equity & Income - Narrative) (Details) (Metropolitan Life Insurance Company, New England Life Insurance Company and General American Life Insurance Company [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Metropolitan Life Insurance Company, New England Life Insurance Company and General American Life Insurance Company [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Description of Regulatory Capital Requirements under Insurance Regulations | in excess of 350% | in excess of 350% |
Equity_Dividend_Restrictions_N
Equity (Dividend Restrictions - Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Of Dividends [Line Items] | |||
In-kind dividend | $35 | $0 | $0 |
Parent Company [Member] | |||
Disclosure Of Dividends [Line Items] | |||
In-kind dividend | 113 | ||
New England Life Insurance Company [Member] | |||
Disclosure Of Dividends [Line Items] | |||
Total amount of dividend pre-approved by regulatory agency | 114 | ||
In-kind dividend | 113 | ||
Non-insurance subsidiaries of Metropolitan Life Insurance Company [Member] | |||
Disclosure Of Dividends [Line Items] | |||
Cash dividends paid to Metropolitan Life Insurance Company by its non-insurance subsidiaries | $95 | $45 |
Other_Expenses_Other_Expenses_
Other Expenses (Other Expenses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Compensation | $2,257 | $2,392 | $2,426 |
Pension, postretirement and postemployment benefit costs | 322 | 364 | 285 |
Commissions | 828 | 781 | 769 |
Volume-related costs | 70 | 253 | 241 |
Affiliated interest costs on ceded and assumed reinsurance | 1,009 | 1,033 | 1,209 |
Capitalization of DAC | -424 | -562 | -632 |
Amortization of DAC and VOBA | 695 | 261 | 991 |
Interest expense on debt | 151 | 153 | 152 |
Premium taxes, licenses and fees | 328 | 263 | 294 |
Professional services | 1,013 | 989 | 946 |
Rent and related expenses, net of sublease income | 128 | 143 | 123 |
Other | -306 | -82 | -410 |
Total other expenses | $6,071 | $5,988 | $6,394 |
Other_Expenses_Restructuring_C
Other Expenses (Restructuring Charges) (Details) (Other Expenses [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Reserve [Roll Forward] | |||
Balance at January 1, | $45 | $22 | $0 |
Restructuring charges | 74 | 103 | 119 |
Cash payments | -82 | -80 | -97 |
Balance at December 31, | 37 | 45 | 22 |
Total restructuring charges incurred since inception of initiative | 296 | 222 | 119 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Balance at January 1, | 39 | 22 | 0 |
Restructuring charges | 66 | 87 | 101 |
Cash payments | -74 | -70 | -79 |
Balance at December 31, | 31 | 39 | 22 |
Total restructuring charges incurred since inception of initiative | 254 | 188 | 101 |
Lease and Asset Impairment | |||
Restructuring Reserve [Roll Forward] | |||
Balance at January 1, | 6 | 0 | 0 |
Restructuring charges | 8 | 16 | 18 |
Cash payments | -8 | -10 | -18 |
Balance at December 31, | 6 | 6 | 0 |
Total restructuring charges incurred since inception of initiative | $42 | $34 | $18 |
Employee_Benefit_Plans_Obligat
Employee Benefit Plans (Obligations and Funded Status) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits U.S. Plans [Member] | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | $8,130 | $8,937 |
Service costs | 183 | 214 |
Interest costs | 413 | 367 |
Plan participants’ contributions | 0 | 0 |
Net actuarial (gains) losses | 1,461 | -967 |
Settlements and curtailments | -13 | 0 |
Change in benefits and other | 574 | 26 |
Benefits paid | -486 | -447 |
Effect of foreign currency translation | 0 | 0 |
Benefit obligations at December 31, | 10,262 | 8,130 |
Change in plan assets | ||
Fair value of plan assets at January 1, | 7,305 | 7,390 |
Actual return on plan assets | 1,018 | -20 |
Change in benefits and other | 523 | 28 |
Plan participants’ contributions | 0 | 0 |
Employer contributions | 390 | 354 |
Benefits paid | -486 | -447 |
Fair value of plan assets at December 31, | 8,750 | 7,305 |
Over (under) funded status at December 31, | -1,512 | -825 |
Amounts recognized in the consolidated balance sheets | ||
Other assets | 0 | 213 |
Other liabilities | -1,512 | -1,038 |
Net amount recognized | -1,512 | -825 |
Accumulated other comprehensive (income) loss: | ||
Net actuarial (gains) losses | 3,034 | 2,207 |
Prior service costs (credit) | -2 | 17 |
Accumulated other comprehensive (income) loss, before income tax | 3,032 | 2,224 |
Accumulated benefit obligation | 9,729 | 7,689 |
Other Postretirement Benefits U.S. Plans [Member] | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | 1,861 | 2,402 |
Service costs | 14 | 20 |
Interest costs | 92 | 92 |
Plan participants’ contributions | 30 | 30 |
Net actuarial (gains) losses | 264 | -550 |
Settlements and curtailments | -6 | 0 |
Change in benefits and other | -16 | 0 |
Benefits paid | -109 | -133 |
Effect of foreign currency translation | -1 | 0 |
Benefit obligations at December 31, | 2,129 | 1,861 |
Change in plan assets | ||
Fair value of plan assets at January 1, | 1,352 | 1,320 |
Actual return on plan assets | 112 | 57 |
Change in benefits and other | 0 | 0 |
Plan participants’ contributions | 30 | 30 |
Employer contributions | 41 | 78 |
Benefits paid | -109 | -133 |
Fair value of plan assets at December 31, | 1,426 | 1,352 |
Over (under) funded status at December 31, | -703 | -509 |
Amounts recognized in the consolidated balance sheets | ||
Other assets | 0 | 0 |
Other liabilities | -703 | -509 |
Net amount recognized | -703 | -509 |
Accumulated other comprehensive (income) loss: | ||
Net actuarial (gains) losses | 420 | 209 |
Prior service costs (credit) | -10 | 1 |
Accumulated other comprehensive (income) loss, before income tax | $410 | $210 |
Employee_Benefit_Plans_Accumul
Employee Benefit Plans (Accumulated Benefit Obligations in Excess of Fair Value) (Details) (Pension Benefits U.S. Plans [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Benefits U.S. Plans [Member] | ||
Accumulated benefit obligation [Abstract] | ||
Projected benefit obligations | $1,981 | $1,037 |
Accumulated benefit obligations | 1,789 | 927 |
Fair value of plan assets | $676 | $0 |
Employee_Benefit_Plans_Project
Employee Benefit Plans (Projected Benefit Obligation in Excess of Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Benefits U.S. Plans [Member] | ||
Defined Benefit Plan Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets [Abstract] | ||
Projected benefit obligations | $10,241 | $1,170 |
Fair value of plan assets | 8,719 | 133 |
Other Postretirement Benefits U.S. Plans [Member] | ||
Defined Benefit Plan Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets [Abstract] | ||
Projected benefit obligations | 2,129 | 1,863 |
Fair value of plan assets | $1,426 | $1,353 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Benefit Costs and Other Changes Recognized in OCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Total recognized in OCI | $1,001 | ($1,191) | $766 |
Pension Benefits U.S. Plans [Member] | |||
Net periodic benefit costs [Abstract] | |||
Service costs | 200 | 214 | 195 |
Interest costs | 437 | 366 | 383 |
Settlement and curtailment costs | 14 | 0 | 0 |
Expected return on plan assets | -475 | -453 | -456 |
Amortization of net actuarial (gains) losses | 169 | 219 | 188 |
Amortization of prior service costs (credit) | 1 | 6 | 6 |
Allocated to affiliates | 292 | 340 | 304 |
Total net periodic benefit costs (credit) | 292 | 340 | 304 |
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Net actuarial (gains) losses | 996 | -492 | 705 |
Prior service costs (credit) | -18 | 0 | 0 |
Amortization of net actuarial (gains) losses | -169 | -219 | -189 |
Amortization of prior service (costs) credit | -1 | -6 | -6 |
Total recognized in OCI | 808 | -717 | 510 |
Total recognized in net periodic benefit costs and OCI | 1,100 | -377 | 814 |
Pension Benefits U.S. Plans [Member] | Affiliated Entity [Member] | |||
Net periodic benefit costs [Abstract] | |||
Allocated to affiliates | -54 | -12 | -12 |
Total net periodic benefit costs (credit) | -54 | -12 | -12 |
Other Postretirement Benefits U.S. Plans [Member] | |||
Net periodic benefit costs [Abstract] | |||
Service costs | 14 | 17 | 31 |
Interest costs | 92 | 85 | 97 |
Settlement and curtailment costs | 2 | 0 | 0 |
Expected return on plan assets | -75 | -74 | -76 |
Amortization of net actuarial (gains) losses | 11 | 51 | 53 |
Amortization of prior service costs (credit) | -1 | -69 | -97 |
Allocated to affiliates | 32 | 10 | 7 |
Total net periodic benefit costs (credit) | 32 | 10 | 7 |
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Net actuarial (gains) losses | 222 | -532 | 232 |
Prior service costs (credit) | -12 | 0 | 0 |
Amortization of net actuarial (gains) losses | -11 | -55 | -57 |
Amortization of prior service (costs) credit | 1 | 75 | 104 |
Total recognized in OCI | 200 | -512 | 279 |
Total recognized in net periodic benefit costs and OCI | 232 | -502 | 286 |
Other Postretirement Benefits U.S. Plans [Member] | Affiliated Entity [Member] | |||
Net periodic benefit costs [Abstract] | |||
Allocated to affiliates | -11 | 0 | -1 |
Total net periodic benefit costs (credit) | ($11) | $0 | ($1) |
Employee_Benefit_Plans_Assumpt
Employee Benefit Plans (Assumptions in Determining Benefit Obligations) (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits U.S. Plans [Member] | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Weighted average discount rate | 4.10% | 5.15% |
Pension Benefits U.S. Plans [Member] | Minimum | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Rate of compensation increase | 2.25% | 3.50% |
Pension Benefits U.S. Plans [Member] | Maximum | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Rate of compensation increase | 8.50% | 7.50% |
Other Postretirement Benefits U.S. Plans [Member] | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Weighted average discount rate | 4.10% | 5.15% |
Employee_Benefit_Plans_Assumpt1
Employee Benefit Plans (Assumptions in Determining Net Periodic Benefit Costs) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits U.S. Plans [Member] | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Weighted average discount rate | 5.15% | 4.20% | 4.95% |
Weighted average expected rate of return on plan assets | 6.25% | 6.24% | 7.00% |
Pension Benefits U.S. Plans [Member] | Minimum | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Pension Benefits U.S. Plans [Member] | Maximum | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Rate of compensation increase | 7.50% | 7.50% | 7.50% |
Other Postretirement Benefits U.S. Plans [Member] | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Weighted average discount rate | 5.15% | 4.20% | 4.95% |
Weighted average expected rate of return on plan assets | 5.70% | 5.76% | 6.26% |
Employee_Benefit_Plans_Assumed
Employee Benefit Plans (Assumed Healthcare Cost Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Assumed healthcare costs trend rates | ||
Healthcare costs trend rate | 6.40% | 6.40% |
Factors, Pre-Medicare | ||
Assumed healthcare costs trend rates | ||
Year that rate reaches ultimate trend rate - Pre-Medicare | 2094 | 2094 |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.40% | 4.40% |
Factors, Post-Medicare | ||
Assumed healthcare costs trend rates | ||
Year that rate reaches ultimate trend rate - Pre-Medicare | 2089 | 2094 |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.70% | 4.60% |
Employee_Benefit_Plans_One_Per
Employee Benefit Plans (One Percent Change in Assumed Healthcare Cost Trend Rates) (Details) (Other Postretirement Benefits U.S. Plans [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Other Postretirement Benefits U.S. Plans [Member] | |
One-percentage point change in assumed healthcare cost trend rates [Abstract] | |
Effect on total of service and interest costs components, one percent increase | $14 |
Effect on total of service and interest costs components, one percent decrease | -11 |
Effect of accumulated postretirement benefit obligations, one percent increase | 302 |
Effect of accumulated postretirement benefit obligations, one percent decrease | ($245) |
Employee_Benefit_Plans_Actual_
Employee Benefit Plans (Actual & Target Allocation of Fair Value by Asset Class) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits U.S. Plans [Member] | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Actual | 100.00% | 100.00% |
Pension Benefits U.S. Plans [Member] | Fixed maturity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 75.00% | |
Actual | 69.00% | 64.00% |
Pension Benefits U.S. Plans [Member] | Equity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 12.00% | |
Actual | 15.00% | 23.00% |
Pension Benefits U.S. Plans [Member] | Alternative securities [Member] | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 13.00% | |
Actual | 16.00% | 13.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Medical | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Actual | 100.00% | 100.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Medical | Fixed maturity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 70.00% | |
Actual | 71.00% | 66.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Medical | Equity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 30.00% | |
Actual | 27.00% | 33.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Medical | Alternative securities [Member] | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 0.00% | |
Actual | 2.00% | 1.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Life Insurance | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Actual | 100.00% | 100.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Life Insurance | Fixed maturity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 0.00% | |
Actual | 0.00% | 0.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Life Insurance | Equity securities | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 0.00% | |
Actual | 0.00% | 0.00% |
Other Postretirement Benefits U.S. Plans [Member] | Postretirement Life Insurance | Alternative securities [Member] | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 100.00% | |
Actual | 100.00% | 100.00% |
Employee_Benefit_Plans_Estimat
Employee Benefit Plans (Estimated Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Pension Benefits U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $8,750 | $7,305 | $7,390 | |
Pension Benefits U.S. Plans [Member] | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6,001 | 4,671 | ||
Pension Benefits U.S. Plans [Member] | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,718 | 2,003 | ||
Pension Benefits U.S. Plans [Member] | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 254 | 274 | ||
Pension Benefits U.S. Plans [Member] | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 735 | 685 | ||
Pension Benefits U.S. Plans [Member] | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,828 | 1,024 | ||
Pension Benefits U.S. Plans [Member] | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 270 | 206 | ||
Pension Benefits U.S. Plans [Member] | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 196 | 479 | ||
Pension Benefits U.S. Plans [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,345 | 1,656 | ||
Pension Benefits U.S. Plans [Member] | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 951 | 1,224 | ||
Pension Benefits U.S. Plans [Member] | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 394 | 432 | ||
Pension Benefits U.S. Plans [Member] | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 767 | 563 | ||
Pension Benefits U.S. Plans [Member] | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 462 | 339 | ||
Pension Benefits U.S. Plans [Member] | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 85 | 13 | ||
Pension Benefits U.S. Plans [Member] | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 90 | 63 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3,179 | 2,430 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,605 | 868 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,605 | 868 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,345 | 1,496 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 951 | 1,064 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 394 | 432 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 189 | 49 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 29 | 1 | ||
Pension Benefits U.S. Plans [Member] | Level 1 | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 11 | 16 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4,651 | 4,056 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4,291 | 3,719 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,638 | 1,948 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 254 | 274 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 718 | 675 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 223 | 156 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 270 | 206 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 188 | 460 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 21 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 21 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 24 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 273 | 290 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 56 | 12 | ||
Pension Benefits U.S. Plans [Member] | Level 2 | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 7 | 14 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 920 | 819 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 105 | 84 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 80 | 55 | 18 | 30 |
Pension Benefits U.S. Plans [Member] | Level 3 | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 17 | 10 | 7 | 5 |
Pension Benefits U.S. Plans [Member] | Level 3 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 8 | 19 | 7 | 2 |
Pension Benefits U.S. Plans [Member] | Level 3 | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 139 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 139 | 129 | 194 |
Pension Benefits U.S. Plans [Member] | Level 3 | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 743 | 563 | 419 | 501 |
Pension Benefits U.S. Plans [Member] | Level 3 | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 3 | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 72 | 33 | 1 | 4 |
Other Postretirement Benefits U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,426 | 1,352 | 1,320 | |
Other Postretirement Benefits U.S. Plans [Member] | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 710 | 608 | ||
Other Postretirement Benefits U.S. Plans [Member] | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 289 | 248 | ||
Other Postretirement Benefits U.S. Plans [Member] | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 35 | 33 | ||
Other Postretirement Benefits U.S. Plans [Member] | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 68 | 63 | ||
Other Postretirement Benefits U.S. Plans [Member] | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 181 | 140 | ||
Other Postretirement Benefits U.S. Plans [Member] | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 74 | 70 | ||
Other Postretirement Benefits U.S. Plans [Member] | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 63 | 54 | ||
Other Postretirement Benefits U.S. Plans [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 268 | 298 | ||
Other Postretirement Benefits U.S. Plans [Member] | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 188 | 196 | ||
Other Postretirement Benefits U.S. Plans [Member] | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 80 | 102 | ||
Other Postretirement Benefits U.S. Plans [Member] | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 447 | 439 | ||
Other Postretirement Benefits U.S. Plans [Member] | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 4 | ||
Other Postretirement Benefits U.S. Plans [Member] | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | 3 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 493 | 569 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 211 | 267 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 42 | 77 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 169 | 135 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 55 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 268 | 298 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 188 | 196 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 80 | 102 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 14 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 4 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 1 | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 930 | 782 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 496 | 340 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 244 | 170 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 35 | 33 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 68 | 63 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 12 | 5 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 74 | 15 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 63 | 54 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 433 | 439 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 2 | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | 3 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3 | 1 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3 | 1 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Corporate fixed maturity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3 | 1 | 4 | 4 |
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Federal agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Foreign government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | U.S. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Municipals securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | 1 | 1 |
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Other securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | 3 | 5 |
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Common stock - domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Common stock - foreign | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Other investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Short-term investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Money market securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Other Postretirement Benefits U.S. Plans [Member] | Level 3 | Derivative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $0 | $0 | $0 | $1 |
Employee_Benefit_Plans_Signifi
Employee Benefit Plans (Significant Unobservable Inputs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits U.S. Plans [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | $8,750 | $7,305 | $7,390 |
Pension Benefits U.S. Plans [Member] | Corporate fixed maturity securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 2,718 | 2,003 | |
Pension Benefits U.S. Plans [Member] | Foreign government | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 735 | 685 | |
Pension Benefits U.S. Plans [Member] | Municipals securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 270 | 206 | |
Pension Benefits U.S. Plans [Member] | Other securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 196 | 479 | |
Pension Benefits U.S. Plans [Member] | Common stock - domestic | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 951 | 1,224 | |
Pension Benefits U.S. Plans [Member] | Other investments | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 767 | 563 | |
Pension Benefits U.S. Plans [Member] | Derivative assets | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 90 | 63 | |
Other Postretirement Benefits U.S. Plans [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 1,426 | 1,352 | 1,320 |
Other Postretirement Benefits U.S. Plans [Member] | Corporate fixed maturity securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 289 | 248 | |
Other Postretirement Benefits U.S. Plans [Member] | Foreign government | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 68 | 63 | |
Other Postretirement Benefits U.S. Plans [Member] | Municipals securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 74 | 70 | |
Other Postretirement Benefits U.S. Plans [Member] | Other securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 63 | 54 | |
Other Postretirement Benefits U.S. Plans [Member] | Common stock - domestic | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 188 | 196 | |
Other Postretirement Benefits U.S. Plans [Member] | Other investments | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 0 | 0 | |
Other Postretirement Benefits U.S. Plans [Member] | Derivative assets | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 1 | 3 | |
Level 3 | Pension Benefits U.S. Plans [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 920 | 819 | |
Level 3 | Pension Benefits U.S. Plans [Member] | Corporate fixed maturity securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 55 | 18 | 30 |
Realized gains (losses) | 3 | 0 | 0 |
Unrealized gains (losses) | 0 | -2 | -1 |
Purchases, sales, issuances and settlements, net | 11 | 17 | -11 |
Transfers into and/or out of Level 3 | 11 | 22 | 0 |
Fair value of plan assets at December 31, | 80 | 55 | 18 |
Level 3 | Pension Benefits U.S. Plans [Member] | Foreign government | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 10 | 7 | 5 |
Realized gains (losses) | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 1 | 8 |
Purchases, sales, issuances and settlements, net | 5 | -3 | -6 |
Transfers into and/or out of Level 3 | 2 | 5 | 0 |
Fair value of plan assets at December 31, | 17 | 10 | 7 |
Level 3 | Pension Benefits U.S. Plans [Member] | Municipals securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 0 | 0 | |
Level 3 | Pension Benefits U.S. Plans [Member] | Other securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 19 | 7 | 2 |
Realized gains (losses) | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | 1 |
Purchases, sales, issuances and settlements, net | -2 | 11 | 4 |
Transfers into and/or out of Level 3 | -9 | 1 | 0 |
Fair value of plan assets at December 31, | 8 | 19 | 7 |
Level 3 | Pension Benefits U.S. Plans [Member] | Common stock - domestic | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 139 | 129 | 194 |
Realized gains (losses) | 0 | -1 | -25 |
Unrealized gains (losses) | 0 | 9 | 9 |
Purchases, sales, issuances and settlements, net | 0 | 2 | -49 |
Transfers into and/or out of Level 3 | -139 | 0 | 0 |
Fair value of plan assets at December 31, | 0 | 139 | 129 |
Level 3 | Pension Benefits U.S. Plans [Member] | Other investments | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 563 | 419 | 501 |
Realized gains (losses) | -13 | 0 | 52 |
Unrealized gains (losses) | 114 | 56 | -38 |
Purchases, sales, issuances and settlements, net | -104 | -58 | -96 |
Transfers into and/or out of Level 3 | 183 | 146 | 0 |
Fair value of plan assets at December 31, | 743 | 563 | 419 |
Level 3 | Pension Benefits U.S. Plans [Member] | Derivative assets | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 33 | 1 | 4 |
Realized gains (losses) | -16 | -2 | 4 |
Unrealized gains (losses) | 19 | -17 | -6 |
Purchases, sales, issuances and settlements, net | 34 | 51 | -1 |
Transfers into and/or out of Level 3 | 2 | 0 | 0 |
Fair value of plan assets at December 31, | 72 | 33 | 1 |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 3 | 1 | |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Corporate fixed maturity securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 1 | 4 | 4 |
Realized gains (losses) | 0 | 0 | 0 |
Unrealized gains (losses) | 1 | 0 | 0 |
Purchases, sales, issuances and settlements, net | 1 | -3 | 0 |
Transfers into and/or out of Level 3 | 0 | 0 | 0 |
Fair value of plan assets at December 31, | 3 | 1 | 4 |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Foreign government | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 0 | 0 | |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Municipals securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 0 | 1 | 1 |
Realized gains (losses) | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net | 0 | -1 | 0 |
Transfers into and/or out of Level 3 | 0 | 0 | 0 |
Fair value of plan assets at December 31, | 0 | 0 | 1 |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Other securities [Member] | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 0 | 3 | 5 |
Realized gains (losses) | 0 | -3 | -2 |
Unrealized gains (losses) | 0 | 4 | 2 |
Purchases, sales, issuances and settlements, net | 0 | -4 | -2 |
Transfers into and/or out of Level 3 | 0 | 0 | 0 |
Fair value of plan assets at December 31, | 0 | 0 | 3 |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Common stock - domestic | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 0 | 0 | |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Other investments | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at December 31, | 0 | 0 | |
Level 3 | Other Postretirement Benefits U.S. Plans [Member] | Derivative assets | |||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | |||
Fair value of plan assets at January 1, | 0 | 0 | 1 |
Realized gains (losses) | 0 | 0 | 2 |
Unrealized gains (losses) | 0 | 0 | -2 |
Purchases, sales, issuances and settlements, net | 0 | 0 | -1 |
Transfers into and/or out of Level 3 | 0 | 0 | 0 |
Fair value of plan assets at December 31, | $0 | $0 | $0 |
Employee_Benefit_Plans_Expecte
Employee Benefit Plans (Expected Gross Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits U.S. Plans [Member] | |
Defined benefit plan estimated future benefit payments [Abstract] | |
2015 | $490 |
2016 | 507 |
2017 | 531 |
2018 | 544 |
2019 | 565 |
2020-2024 | 3,134 |
Other Postretirement Benefits U.S. Plans [Member] | |
Defined benefit plan estimated future benefit payments [Abstract] | |
2015 | 81 |
2016 | 82 |
2017 | 85 |
2018 | 88 |
2019 | 92 |
2020-2024 | $522 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of benefits calculated with the traditional formula | 89.00% | |||
Total revenue from annuity and life insurance contracts recognized | $50 | $49 | $54 | |
Total investment income (loss) from annuity and life insurance contracts | 1,200 | 20 | 867 | |
Defined Contribution Plan, Cost Recognized | 68 | 84 | 83 | |
Pension Benefits U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Aggregate projected benefit obligations | 10,262 | 8,130 | 8,937 | |
Estimated net actuarial losses amortized into net periodic benefit cost over the next year | 200 | |||
Estimated prior service cost amortized into net periodic benefit cost over the next year | -1 | |||
Weighted average expected rate of return on plan assets | 6.25% | 6.24% | 7.00% | |
Other Postretirement Benefits U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Aggregate projected benefit obligations | 2,129 | 1,861 | 2,402 | |
Expected future discretionary contributions | 50 | |||
Estimated net actuarial losses amortized into net periodic benefit cost over the next year | 31 | |||
Estimated prior service cost amortized into net periodic benefit cost over the next year | -4 | |||
Weighted average expected rate of return on plan assets | 5.70% | 5.76% | 6.26% | |
United States Pension Plan of US Entity, Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future discretionary contributions | 300 | |||
United States Pension Plan of US Entity, Non Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Aggregate projected benefit obligations | 1,300 | 1,000 | ||
Expected future discretionary contributions | $70 | |||
Scenario, Forecast [Member] | Pension Benefits U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average expected rate of return on plan assets | 6.24% | |||
Scenario, Forecast [Member] | Other Postretirement Benefits U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average expected rate of return on plan assets | 5.65% |
Income_Tax_Provision_for_Incom
Income Tax (Provision for Income Tax from Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $901 | $789 | $675 |
State and local | 3 | 2 | 2 |
Foreign | 74 | 176 | 176 |
Subtotal | 978 | 967 | 853 |
Deferred: | |||
Federal | 538 | -411 | 346 |
Foreign | 16 | 125 | -144 |
Subtotal | 554 | -286 | 202 |
Current and Deferred: | |||
Provision for income tax expense (benefit) | $1,532 | $681 | $1,055 |
Income_Tax_Income_Loss_from_Co
Income Tax (Income Loss from Continuing Operations Before Income Tax Expense from Domestic and Foreign Operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income from continuing operations: | |||
Domestic | $5,335 | $2,540 | $3,153 |
Foreign | 56 | 282 | 545 |
Income (loss) from continuing operations before provision for income tax | $5,391 | $2,822 | $3,698 |
Income_Tax_Reconciliation_of_I
Income Tax (Reconciliation of Income Tax Provision between US Statutory Rate and As Reported for Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income tax expense benefit continuing operations income tax reconciliation | |||
Tax provision at U.S. statutory rate | $1,887 | $988 | $1,294 |
Tax effect of: | |||
Dividend received deduction | -82 | -66 | -75 |
Tax-exempt income | -40 | -42 | -43 |
Prior year tax | 11 | 29 | 10 |
Low income housing tax credits | -205 | -190 | -142 |
Other tax credits | -66 | -44 | -18 |
Foreign tax rate differential | 0 | 2 | 3 |
Change in valuation allowance | 0 | -4 | 13 |
Other, net | 27 | 8 | 13 |
Provision for income tax expense (benefit) | $1,532 | $681 | $1,055 |
Income_Tax_Net_Deferred_Income
Income Tax (Net Deferred Income Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred income tax assets: | ||
Policyholder liabilities and receivables | $1,577 | $1,823 |
Net operating loss carryforwards | 29 | 64 |
Employee benefits | 1,015 | 649 |
Capital loss carryforwards | 0 | 14 |
Tax credit carryforwards | 979 | 909 |
Litigation-related and government mandated | 259 | 223 |
Other | 309 | 349 |
Total gross deferred income tax assets | 4,168 | 4,031 |
Less: Valuation allowance | 22 | 72 |
Total net deferred income tax assets | 4,146 | 3,959 |
Deferred income tax liabilities: | ||
Investments, including derivatives | 2,402 | 2,021 |
Intangibles | 72 | 77 |
DAC | 1,568 | 1,600 |
Net unrealized investment gains | 3,903 | 2,019 |
Other | 36 | 27 |
Total deferred income tax liabilities | 7,981 | 5,744 |
Deferred tax assets and liabilities [Abstract] | ||
Net deferred income tax asset (liability) | ($3,835) | ($1,785) |
Income_Tax_Net_Operating_and_C
Income Tax (Net Operating and Capital Loss Carryforwards for Tax Purposes) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | $21 |
Domestic Tax Authority [Member] | 2015-2019 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 0 |
Domestic Tax Authority [Member] | 2020-2024 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 0 |
Domestic Tax Authority [Member] | 2025-2029 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 0 |
Domestic Tax Authority [Member] | 2030-2034 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 21 |
Domestic Tax Authority [Member] | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 0 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 137 |
State and Local Jurisdiction [Member] | 2015-2019 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 32 |
State and Local Jurisdiction [Member] | 2020-2024 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 44 |
State and Local Jurisdiction [Member] | 2025-2029 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 53 |
State and Local Jurisdiction [Member] | 2030-2034 | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 8 |
State and Local Jurisdiction [Member] | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | $0 |
Income_Tax_Income_Tax_Tax_Cred
Income Tax Income Tax (Tax Credit Carryforwards) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $979 | $909 |
Foreign Tax Authority [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 301 | |
Foreign Tax Authority [Member] | 2015-2019 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Foreign Tax Authority [Member] | 2020-2024 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 301 | |
Foreign Tax Authority [Member] | 2025-2029 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Foreign Tax Authority [Member] | 2030-2034 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Foreign Tax Authority [Member] | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
General business credit member | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 836 | |
General business credit member | 2015-2019 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
General business credit member | 2020-2024 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
General business credit member | 2025-2029 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 4 | |
General business credit member | 2030-2034 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 832 | |
General business credit member | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit member | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 32 | |
Other tax credit member | 2015-2019 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit member | 2020-2024 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit member | 2025-2029 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit member | 2030-2034 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit member | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $32 |
Income_Tax_Reconciliation_of_U
Income Tax (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | $532 | $532 | $525 |
Additions for tax positions of prior years | 27 | 50 | 27 |
Reductions for tax positions of prior years | -13 | -4 | -5 |
Additions for tax positions of current year | 3 | 3 | 0 |
Settlements with tax authorities | -3 | -49 | -15 |
Balance at December 31, | 546 | 532 | 532 |
Unrecognized tax benefits that, if recognized would impact the effective rate | $497 | $491 | $466 |
Income_Tax_Interest_Accrued_Re
Income Tax (Interest Accrued Related to Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Interest recognized in the consolidated statements of operations | $37 | $17 | $8 |
Interest included in other liabilities in the consolidated balance sheets | $265 | $228 |
Income_Tax_Narrative_Details
Income Tax (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amounts due from affiliates per tax sharing agreement | ($24) | ($14) | |
Amounts due to affiliates per tax sharing agreement | 157 | ||
Federal statutory tax rate | 35.00% | ||
Income tax benefit related to the separate account dividends received deduction | 92 | 53 | |
True-up of the prior year tax return included in current year benefit related to the separate account dividends received deduction | 16 | -7 | |
Balance Sheet Reclassification With Other Deferred Tax Assets [Member] | |||
Valuation allowance, change during year | $50 |
Contingencies_Commitments_and_2
Contingencies, Commitments and Guarantees (Asbestos Claims) (Details) (Asbestos Related Claims [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claims | Claims | Claims | |
Asbestos Related Claims [Member] | |||
Loss Contingencies [Line Items] | |||
Asbestos personal injury claims at year end | 68,460 | 67,983 | 65,812 |
Number of new claims during the year | 4,636 | 5,898 | 5,303 |
Settlement payments during the year | $46 | $37 | $36.40 |
Asbestos-related claims liability, ending balance | $690 |
Contingencies_Commitments_and_3
Contingencies, Commitments and Guarantees (Insolvency Assessments) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets: | ||
Premium tax offset for future undiscounted assessments | $34 | $46 |
Premium tax offsets currently available for paid assessments | 65 | 54 |
Other Liabilities: | ||
Insolvency assessments | 50 | 67 |
Insurance-related Assessments [Member] | ||
Loss Contingencies [Line Items] | ||
Total assets held for insolvency assessments | $99 | $100 |
Contingencies_Commitments_and_4
Contingencies, Commitments and Guarantees (Leases) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Gross rental payments 2015 | $223 |
Gross rental payments 2016 | 190 |
Gross rental payments 2017 | 147 |
Gross rental payments 2018 | 133 |
Gross rental payments 2019 | 110 |
Gross rental payments thereafter | 701 |
Gross rental payments total | 1,504 |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $108 |
Contingencies_Commitments_and_5
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Claims | Claims | Claims | |
Minimum | |||
Loss Contingencies | |||
The approximate amount of the aggregate range of reasonably possible losses in excess of amounts accrued for matters as to which an estimate can be made | $0 | ||
Maximum | |||
Loss Contingencies | |||
The approximate amount of the aggregate range of reasonably possible losses in excess of amounts accrued for matters as to which an estimate can be made | 390,000,000 | ||
Superfund Site Settlement Agreements [Member] | |||
Loss Contingencies | |||
Number of regulatory matters and other claims | 2 | ||
Maximum estimate of costs for environmental testing | 100,000 | ||
Maximum estimate of aggregate costs to resolve matter | 1,000,000 | ||
Superfund Site Settlement Agreements [Member] | Minimum | |||
Loss Contingencies | |||
Damages Sought | 1,000,000 | ||
C-Mart, Inc. V. Metropolitan Life Insurance Company, Et Al [Member] | Maximum | |||
Loss Contingencies | |||
Loss Contingency, Estimate of Possible Loss | 23,000,000 | ||
Asbestos Issue [Member] | |||
Loss Contingencies | |||
Loss Contingency Accrual | $690,000,000 | ||
Number of regulatory matters and other claims | 68,460 | 67,983 | 65,812 |
Contingencies_Commitments_and_6
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Contingencies, Commitments and Guarantees (Textuals) [Abstract] | ||
Minimum indemnities and guarantees contractual limitation | less than $1 million | |
Maximum indemnities and guarantees contractual limitation | $800,000,000 | |
Liabilities for indemnities, guarantees and commitments | 3,000,000 | 3,000,000 |
Cumulative maximum indemnities and guarantees contractual limitation | 1,100,000,000 | |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 3,600,000,000 | 3,400,000,000 |
Mortgage Loan Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $3,900,000,000 | $3,100,000,000 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Quarterly Results of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results of Operations (Unaudited) | |||||||||||
Total revenues | $10,585 | $9,857 | $9,252 | $9,037 | $9,884 | $8,018 | $8,632 | $8,766 | $38,731 | $35,300 | $36,046 |
Total expenses | 9,224 | 8,017 | 8,210 | 7,889 | 9,106 | 7,758 | 7,771 | 7,843 | 33,340 | 32,478 | 32,348 |
Income (loss) from continuing operations, net of income tax | 979 | 1,303 | 749 | 828 | 580 | 242 | 646 | 673 | 3,859 | 2,141 | 2,643 |
Income (loss) from discontinued operations, net of income tax | 0 | 0 | 0 | -3 | 1 | 0 | 0 | 0 | -3 | 1 | 40 |
Net income (loss) | 979 | 1,303 | 749 | 825 | 581 | 242 | 646 | 673 | 3,856 | 2,142 | 2,683 |
Less: Net income (loss) attributable to noncontrolling interests | 1 | -7 | 0 | 1 | -4 | -5 | 3 | -1 | -5 | -7 | 2 |
Net income (loss) attributable to Metropolitan Life Insurance Company | $978 | $1,310 | $749 | $824 | $585 | $247 | $643 | $674 | $3,861 | $2,149 | $2,681 |
Related_Party_Transactions_Ser
Related Party Transactions (Service Agreements - Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction, Due from (to) Related Party [Abstract] | |||
Net receivables (payables), due from (to) affiliates | ($169) | ($327) | |
Related Party Transaction [Line Items] | |||
Other expenses | 6,071 | 5,988 | 6,394 |
Universal life and investment-type product policy fees | 2,466 | 2,363 | 2,239 |
Other revenues | 1,808 | 1,699 | 1,730 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Universal life and investment-type product policy fees | 129 | 127 | 108 |
Other revenues | 177 | 142 | 113 |
Affiliated Entity [Member] | Services Necessary To Conduct The Company's Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Other expenses | 2,100 | 2,400 | 2,600 |
Affiliated Entity [Member] | Services Necessary To Conduct The Affiliates' Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Other expenses | $1,800 | $1,400 | $1,600 |
Consolidated_Summary_of_Invest1
Consolidated Summary of Investments - Other Than Investments in Related Parties (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | $265,283 |
Amount at Which Shown on Balance Sheet | 280,714 |
Fixed Maturities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 173,604 |
Estimated Fair Value | 188,911 |
Amount at Which Shown on Balance Sheet | 188,911 |
Foreign government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 3,153 |
Estimated Fair Value | 3,844 |
Amount at Which Shown on Balance Sheet | 3,844 |
U.S. Treasury and agency | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 34,391 |
Estimated Fair Value | 39,070 |
Amount at Which Shown on Balance Sheet | 39,070 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 14,945 |
Estimated Fair Value | 16,861 |
Amount at Which Shown on Balance Sheet | 16,861 |
State and political subdivision | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 5,329 |
Estimated Fair Value | 6,520 |
Amount at Which Shown on Balance Sheet | 6,520 |
All other corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 71,950 |
Estimated Fair Value | 77,200 |
Amount at Which Shown on Balance Sheet | 77,200 |
Total bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 129,768 |
Estimated Fair Value | 143,495 |
Amount at Which Shown on Balance Sheet | 143,495 |
Mortgage-backed and asset-backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 42,804 |
Estimated Fair Value | 44,302 |
Amount at Which Shown on Balance Sheet | 44,302 |
Redeemable preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,032 |
Estimated Fair Value | 1,114 |
Amount at Which Shown on Balance Sheet | 1,114 |
Trading and fair value option securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 720 |
Estimated Fair Value | 705 |
Amount at Which Shown on Balance Sheet | 705 |
Equity Securities, Investment Summary [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,926 |
Estimated Fair Value | 2,065 |
Amount at Which Shown on Balance Sheet | 2,065 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,236 |
Estimated Fair Value | 1,352 |
Amount at Which Shown on Balance Sheet | 1,352 |
Non-redeemable preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 690 |
Estimated Fair Value | 713 |
Amount at Which Shown on Balance Sheet | 713 |
Mortgage loans held-for-investment | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 49,059 |
Amount at Which Shown on Balance Sheet | 49,059 |
Policy loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 8,491 |
Amount at Which Shown on Balance Sheet | 8,491 |
Real estate and real estate joint ventures | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 7,595 |
Amount at Which Shown on Balance Sheet | 7,595 |
Real estate acquired in satisfaction of debt | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 279 |
Amount at Which Shown on Balance Sheet | 279 |
Other limited partnership interests | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 4,926 |
Amount at Which Shown on Balance Sheet | 4,926 |
Short-term investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 4,474 |
Amount at Which Shown on Balance Sheet | 4,474 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 14,209 |
Amount at Which Shown on Balance Sheet | $14,209 |
Consolidated_Supplementary_Ins1
Consolidated Supplementary Insurance Information (Balance Sheet Items) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC & VOBA | $5,975 | $6,416 | $5,832 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 126,397 | 119,405 | 123,477 |
Policyholder Account Balances | 95,902 | 92,498 | 94,716 |
Policyholder Dividends Payable | 615 | 601 | 610 |
Unearned Premiums | 356 | 273 | 284 |
Unearned Revenue | 568 | 538 | 577 |
Retail | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC & VOBA | 5,544 | 5,990 | 5,407 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 64,965 | 62,912 | 64,757 |
Policyholder Account Balances | 30,058 | 30,434 | 31,393 |
Policyholder Dividends Payable | 615 | 601 | 610 |
Unearned Premiums | 35 | 36 | 36 |
Unearned Revenue | 527 | 507 | 539 |
Group, Voluntary & Worksite Benefits | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC & VOBA | 324 | 333 | 337 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 20,500 | 19,460 | 19,599 |
Policyholder Account Balances | 8,305 | 8,575 | 8,918 |
Policyholder Dividends Payable | 0 | 0 | 0 |
Unearned Premiums | 321 | 236 | 248 |
Unearned Revenue | 0 | 0 | 0 |
Corporate Benefit Funding | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC & VOBA | 106 | 93 | 88 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 40,414 | 36,452 | 38,645 |
Policyholder Account Balances | 57,539 | 53,489 | 54,406 |
Policyholder Dividends Payable | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Unearned Revenue | 41 | 31 | 38 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC & VOBA | 1 | 0 | 0 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 518 | 581 | 476 |
Policyholder Account Balances | 0 | 0 | -1 |
Policyholder Dividends Payable | 0 | 0 | 0 |
Unearned Premiums | 0 | 1 | 0 |
Unearned Revenue | $0 | $0 | $0 |
Consolidated_Supplementary_Ins2
Consolidated Supplementary Insurance Information (Income Statement Items) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | $23,850 | $22,838 | $22,119 |
Net Investment Income | 11,893 | 11,785 | 11,852 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 26,029 | 25,285 | 24,659 |
Amortization of DAC and VOBA Charged to Other Expenses | 695 | 261 | 991 |
Other Operating Expenses | 6,616 | 6,932 | 6,698 |
Retail | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 5,640 | 5,456 | 5,379 |
Net Investment Income | 5,101 | 5,067 | 5,113 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 6,170 | 6,059 | 6,121 |
Amortization of DAC and VOBA Charged to Other Expenses | 652 | 217 | 948 |
Other Operating Expenses | 2,666 | 2,971 | 3,067 |
Group, Voluntary & Worksite Benefits | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 15,097 | 14,420 | 13,937 |
Net Investment Income | 1,616 | 1,618 | 1,540 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 13,977 | 13,346 | 12,747 |
Amortization of DAC and VOBA Charged to Other Expenses | 26 | 25 | 29 |
Other Operating Expenses | 2,121 | 1,970 | 1,878 |
Corporate Benefit Funding | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 2,985 | 2,886 | 2,802 |
Net Investment Income | 4,895 | 4,680 | 4,636 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 5,805 | 5,813 | 5,792 |
Amortization of DAC and VOBA Charged to Other Expenses | 17 | 19 | 12 |
Other Operating Expenses | 472 | 474 | 421 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 128 | 76 | 1 |
Net Investment Income | 281 | 420 | 563 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 77 | 67 | -1 |
Amortization of DAC and VOBA Charged to Other Expenses | 0 | 0 | 2 |
Other Operating Expenses | $1,357 | $1,517 | $1,332 |
Consolidated_Reinsurance_Conso
Consolidated Reinsurance (Consolidated Reinsurance) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $2,935,363 | $2,940,853 | $2,914,815 |
Ceded | 372,886 | 401,576 | 417,026 |
Assumed | 830,980 | 844,946 | 785,391 |
Net Amount | 3,393,457 | 3,384,223 | 3,283,180 |
% Amount Assumed to Net | 24.50% | 25.00% | 23.90% |
Consolidated Reinsurance | |||
Gross Amount | 20,963 | 20,290 | 19,821 |
Ceded | 1,252 | 1,284 | 1,291 |
Assumed | 1,673 | 1,469 | 1,350 |
Net premiums | 21,384 | 20,475 | 19,880 |
% Amount Assumed to Net | 7.80% | 7.20% | 6.80% |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Gross Amount | 14,135 | 13,820 | 18,982 |
Ceded | 1,159 | 1,187 | 756 |
Assumed | 1,630 | 1,423 | 794 |
Net premiums | 14,606 | 14,056 | 19,020 |
% Amount Assumed to Net | 11.20% | 10.10% | 4.20% |
Accident and health insurance | |||
Consolidated Reinsurance | |||
Gross Amount | 6,828 | 6,470 | 839 |
Ceded | 93 | 97 | 535 |
Assumed | 43 | 46 | 556 |
Net premiums | $6,778 | $6,419 | $860 |
% Amount Assumed to Net | 0.60% | 0.70% | 64.70% |
Consolidated_Reinsurance_Conso1
Consolidated Reinsurance (Consolidated Reinsurance - Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Reinsurance | |||
Reinsurance ceded | $1,252 | $1,284 | $1,291 |
Reinsurance assumed | 1,673 | 1,469 | 1,350 |
Assumed | 830,980 | 844,946 | 785,391 |
Ceded | 372,886 | 401,576 | 417,026 |
Affiliated Entity [Member] | |||
Consolidated Reinsurance | |||
Assumed | 277,900 | 259,600 | 230,600 |
Ceded | 23,900 | 26,100 | 27,400 |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Reinsurance ceded | 1,159 | 1,187 | 756 |
Reinsurance assumed | 1,630 | 1,423 | 794 |
Life insurance (1) | Affiliated Entity [Member] | |||
Consolidated Reinsurance | |||
Reinsurance ceded | 36 | 45 | 54 |
Reinsurance assumed | $681 | $451 | $319 |